Google's Android operating system is an open-source, free framework
which appeals to developers due to this unrestrictive nature. However,
with such an open and free system, there is always the potential for
abuse, a lack of patching and security consistency, and a wealth of
Android-based operating systems and apps which many contain different
vulnerabilities that can be exploited.
After analyzing the 1,000 most-downloaded free Android applications
in the Google Play store, the FireEye Mobile Security Team found that a
significant portion of them are susceptible to Man-In-The-Middle (MITM)
attacks. According to a blog post published Thursday, the researchers found that as of July 17, 2014, 674 out of 1,000 contained at least one of three SSL vulnerabilities studied.
In other words, 68 percent of the most popular apps could become a pathway for cybercriminals to lift sensitive data.
Man-In-The-Middle (MITM) attacks occur when an attacker is able to
intercept data exchanged between a device and a remote server. Once
intercepted, data can be lifted freely -- which could include usernames
and passwords, emails, device ID, location, photos and video. In
addition, the vulnerability explored allows criminals to inject
malicious files into vulnerable applications, launch DDoS attacks, or
hold user data for ransom.
The security team says that many of these vulnerabilities were traced
back to configurations within advertising libraries used by app
developers, which allows advertisements to be displayed without the app
creator having to develop the library themselves.
While the HTTPS protocol is often used to make it harder to intercept
data, the incorrect use of the Android platform’s SSL libraries can
become the weak link which allows MITM attacks.
FireEye looked at three particular SSL vulnerabilities within its
research -- the use of trust managers that do not check certificates,
using hostname verifiers that do nothing and SSL errors in Webkit being
ignored. Out of the 1,000 most-downloaded free apps in Google Play, out
of 614 applications that use SSL/TLS to communicate with a remote
server, 73 percent did not check certificates, and 8 percent used their
own hostname verifiers that do not check hostnames. Out of 285 apps
which used Webkit, 77 percent ignored SSL errors generated.

The developers of vulnerable apps discovered were notified by the
FireEye team, and were subsequently acknowledged with the promise of
addressing the vulnerabilities in subsequent versions of their
applications.
In addition to this sample, the team also roughly 10,000 Google Play
apps, and estimate that approximately 40 percent use trust managers that
do not check server certificates, exposing any data they exchange with
their servers to potential theft. Furthermore, around seven percent use
hostname verifiers that do not check anything, and 13 percent do not
check SSL errors when Webkit is used.
Source; zdnet.com
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