The malicious applications sent personal details, including the phone's unique IMEI number, to a US-based server. Worse, it exploited security flaws to root the phone, and installed a backdoor application that allows further software to be installed to the handsets. Though Google has now purged the applications from the Market, the rooting and backdoor mean that the anyone who has run one of the malicious programs should reset their phone to stock conditions to clean it up. The flaw used to root the operating system was fixed in Android 2.2.2 and 2.3, so users of those versions should be able to get away with simply removing the applications. The programs were all (re)published by an entity named Myournet; it too has now been removed from the Market.
Malware in Android Market highlights Google's vulnerability