I've been focused on conducting research into the mobile spyware arena these last few months and the results have been very interesting. As I'm sure you are aware, I released a fully functional piece of Blackberry Spyware called txsBBSpy at the Shmoocon security conference in February 2010 and have done a number of interviews and podcasts on the topic. While my research is interesting, other high profile attacks just this week could really make this type of spyware/trojan a lot more dangerous.
At CanSecWest security conference this week, iPhone, Firefox, Safari, and other mobile operating systems and browsers were proven vulnerable to zero day exploitation. (The Register Article). Many people have expressed to me that txsBBSpy doesn't actually have an infection vector and that mobile devices are secure from attack. I think the results of Pwn2Own clearly demonstrate otherwise. Mobile devices are just as insecure, if not more so than the standard desktop system. What makes it even more dangerous is that researchers who sell their exploits can get between 10K$ and 115K$ depending on the specifics of the flaw. That's no longer chump change! Why would any researcher have any incentive at all to disclose the flaw responsibly given the big dollars that can be made by selling to a broker.
The only thing really limiting researchers from selling their flaws on the open market is the threat of incarceration. Jeremy Jethro was sentenced this week to three years probation and 10K$ in fines for selling exploit code to hacker Albert Gonzalez who in turn used the code in hacking companies and stealing 90 million credit card and debit card numbers. Gonzalez paid Jethro 60$K for the exploit while Jethro had no indication that Gonzalez intended to use the exploit code in any illegitimate way. Had this gone to court, the precedent that could have been set here is astonishing. Luckily this case was a plea bargain, otherwise the selling of exploit code would essentially be criminalized and we wouldn't be sure to what degree this really impacts the researcher. If a researcher were to sell his exploit code to ZDI and then ZDI somehow accidentally leaks the code that is then used in an attack, who is to blame and who pays the fines/jail time? If a researcher sells his code to an independent broker who then resells the code to a criminal, who is left holding the legal bag? We do know this much.. it's dangerous and potentially illegal to sell exploit code that is then used in a crime regardless of your knowledge of the crime. Everything else is still shades of grey.
What does this mean for mobile based Spyware? It means that those vulnerable phone operating systems and browsers are likely to get exploited with previously unknown vulnerabilities and spyware like mine is likely to be the resulting payload. Welcome to the era of malicious mobile attacks.