Civics: US Government-funded Android phones come preinstalled with unremovable malware

Dan Goodin:

An Android phone subsidized by the US government for low-income users comes preinstalled with malware that can’t be removed without making the device cease to work, researchers reported on Thursday.

The UMX U686CL is provided by Virgin Mobile’s Assurance Wireless program. Assurance Wireless is an offshoot of the Lifeline Assistance program, a Federal Communications Commissions plan that makes free or government-subsidized phones service available to millions of low-income families. The program is often referred to as the Obama Phone because it expanded in 2008, when President Barack Obama took office. The UMX U686CL runs Android and is available for $35 to qualifying users.

Researchers at Malwarebytes said on Thursday that the device comes with some nasty surprises. Representatives of Sprint, the owner of Virgin Mobile, meanwhile said it didn’t believe the apps were malicious.

The first is heavily obfuscated malware that can install adware and other unwanted apps without the knowledge or permission of the user. Android/Trojan.Dropper.Agent.UMX contains striking similarities to two other trojan droppers. For one, it uses identical text strings and almost identical code. And for another, it contains an encoded string that, when decoded, contains a hidden library named com.android.google.bridge.Liblmp.

Once the library is loaded into memory, it installs software Malwarebytes calls Android/Trojan.HiddenAds. It aggressively displays ads. Malwarebytes researcher Nathan Collier said company users have reported that the hidden library installs a variant of HiddenAds, but the researchers were unable to reproduce that installation, possibly because the library waits some amount of time before doing so.