One vulnerability was identified when a security specialist analysed HTC devices and found that the integrated web browser has the right to install further packages (used to automatically update its Flash Lite plug-in). Attackers can exploit this if they have found another browser hole.
Android specialist Jon Oberheide demonstrated another hole which involved misusing the Account Manager to generate an authentication token for the Android Market and obtaining permission to install further apps from there. However, this initially requires a specially crafted app to be installed on the smartphone. Nothing could be easier: Oberheide released the allegedly harmless "Angry Birds Bonus Levels" app intothe Android Market and, upon installation, this app downloaded and installed three further apps ("Fake Toll Fraud", "Fake Contact Stealer" and "Fake Location Tracker") without requesting the user's permission.