Updated: Clarifications on which phones are affected, and the nature of the vulnerability.
A major security vulnerability has been discovered in some TouchWiz-based Samsung smartphones, including the Galaxy S2 and certain Galaxy S3 models on older firmware. The bug was first demonstrated by security expert Ravi Borgaonkar at the Ekoparty security conference. It involves the use of a single line of code in a malicious web page, and immediately triggers a factory reset without prompting the user, and without allowing them a way to cancel the process. Even more serious is the possibility that this could be paired with a similar glitch that can render the user's SIM card inoperable. And as the malicious code is in URL form, it can also be delivered via NFC or QR code.
Our Verizon Galaxy S3 was not reset by the malicious code embedded in a web page, though we were able to trigger a reset using similar code tied to a hyperlink. Mobile dev Justin Case tells us the issue is fixed in the latest AT&T and international Galaxy S3 firmwares, though devices that have not been updated may remain vulnerable. Others have reported that devices like the Galaxy Ace and Galaxy Beam are also affected. As far as we can tell, though, the bug does not affect Samsung phones running stock Android, like the Galaxy Nexus.
The vulnerability is the result of the way the native Samsung dialer app handle USSD codes and telephone links. USSD codes are special combinations of characters that can be entered in the keypad to perform certain functions, like enabling call forwarding, or accessing hidden menus on the device. On Samsung phones, there's also a USSD code for factory resetting the phone (and presumably another for nuking your SIM). This results in a particularly nasty issue for anyone unfortunate enough to run by a malicious web page.
There are, of course, other applications of this glitch -- for example, the ability to automatically run numbers through the dialer could be used to call premium-rate phone numbers. But the fact that just visiting a web site could trigger your phone to factory reset itself, and nuke your SIM in the process, is a very serious issue. So update your software if you're running an S3, and if you're not, we'd recommend using a third-party dialer like Dialer One until all this has blown over.
We've reached out to Samsung for comment on this issue, and we'll keep you updated with any information they provide.
Source: @Paul Olvia; via SlashGear, @backlon, @teamandirc
Source: http://feedproxy.google.com/~r/androidcentral/~3/hsKdlLcf0oM/story01.htm
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