Apps which demand money from people with a threat to release private information, or wipe a device, are known as ransomware.
"Ransomware is more prevalent on computers than phones, but this could be the start of a trend,"
Adult Player appeared to offer pornography, but
secretly took pictures of users with the phone's front-facing camera.
It then locked the user's device and displayed
a demand for $500 (£330) which was difficult to bypass.
One security expert told the BBC that
ransomware was a lucrative and growing area of cybercrime.
In August, Intel
Security said examples
of ransomware had increased 127% since 2014 - primarily affecting desktop
computers and laptops. "One of the reasons for the increase is
that it's very easy to make," said Raj Samani, chief technology officer
for Intel Security in Europe.
"There are people you can pay to do the
work for you, and it pays really well. One group we tracked made more than
$75,000 in 10 weeks.
"Apps like this rely on the embarrassment
factor. If you don't pay, your reputation is on the line."
Adult Player was the second example of
pornography-focused ransomware discovered
by Zscaler.
The app was not available from vetted
storefronts such as Google Play, but could be installed directly from a
webpage.
Zscaler said the app's ransom message kept the
phone's screen switched on at all times, and reappeared if the handset was
restarted threatens to delete personal
data
"Ransomware is more prevalent on computers
than phones, but this could be the start of a trend," said Mr Samani.
"You can stay safe with some basic common
sense. Some ransomware threatens to delete your photos, videos and documents so
back up your data. Then if you are targeted you can wipe your system and start
over.
"Only download apps from the proper Google
Play store. And if you receive an app download link in an email, don't click
it."
Zscaler said anybody that had downloaded Adult
Player should reboot their handset into "safe mode". The exact method
varies between handset manufacturers.
Safe mode loads the operating system without
running any third-party apps, allowing people to delete malicious software.SOURCE: BBC

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