The threat facing Android

Mobile malware is on the rise, and so is the market for companies that develop anti-virus software for cell phones -- particularly Android devices.

According to a recent report from Lookout Mobile Security, three out of 10 Android phone users will encounter a web-based threat on their device this year. The report also says that Android users are 2.5 times more likely to encounter malware today than they were six months ago. An estimated half million to one million people were affected by Android malware in the first half of 2011. "On the PC, you have to hack someone's account or get access to their credentials," says Kevin Mahaffey, co-founder and CTO of Lookout, which sells a security app that protects your phone if it's lost or stolen and blocks phishing and malware sites. "On mobile it's much easier for the bad guys to make money. They can directly monetize by charging to a user's phone bill." Of course, Android is not the only mobile operating system that the "bad guys" are targeting, and Lookout isn't the only company trying to capitalize on the growing security threats on cell phones. Apple's iOS and other platforms are not immune to malware, though reports like Lookout's suggest malicious applications have been most common on Google's (popular Android OS. It now claims almost 50% of the worldwide smartphone market. According to Lookout, the number of Android apps infected with malware rose from 80 to 400 in the first half of this year. Just this week, researchers at enterprise software vendor CA Technologies said they uncovered new Android malware that can actually record conversations on infected phones.