DALLAS and BEIJING, April 15, 2013

DALLAS and BEIJING, April 15, 2013 /PRNewswire/ -- According to a new security

report released today by NQ Mobile Inc. (NYSE: NQ), a leading global provider

of mobile Internet services, mobile malware threats increased 163% to more

than 65,000 in 2012. The company warns, however, that the problem is becoming

more complex as smarter mobile malware can better target connected devices.

Malware Grows and Becomes Smarter

Nearly 95 percent of all mobile malware discovered in 2012 targeted the

Android OS. The top three methods for delivering malware in 2012 were app

repackaging^1, malicious URLs^2, and smishing^3.  NQ Mobile estimates that

these forms of malware helped infect an estimated 32.8 million Android devices

in 2012 -- an increase of over 200 percent from 2011.

In the first quarter of 2013 mobile malware threats continued to grow and have

become smarter. In February of this year, a new type of mobile malware was

discovered that could jump from an Android device to infect a PC when they

were connected via the USB port. Although only a few Android devices were

infected, this attack illustrates the growing need to keep private data secure

in an increasingly interconnected device ecosystem.

Mobile Hackers Sell Private Information to Cybercriminals

NQ Mobile Security Labs, a team of over 250 mobile security professionals

around the world who proactively monitor the mobile landscape for new malware

threats and mobile hacking methods, have been also been observing increased

collaboration between mobile hackers and cybercriminals. These unlawful

collaborations can have disastrous effects on consumers.  Mobile hackers are

using malware to capture consumers' private information and then selling this

information to cybercriminals who are in turn using social engineering tactics

to gain access to the consumers' finances.

"The security industry's 'discover-first-and-inoculate-second' strategy is no

longer enough," said Omar Khan, Co-CEO, NQ Mobile. "We need smarter systems

that can discover threats before they infect consumers as well as more

education so consumers can better spot and avoid these new mobile scams."

Key Findings

  o Over 32.8 million Android devices were infected in 2012 vs. 10.8 million

    in 2011 – an increase of over 200 percent

  o The top five markets for infected mobile devices were China (25.5%), India

    (19.4%), Russia (17.9%), United States (9.8%) and Saudi Arabia (9.6%)

  o 65% of malware discovered in 2012 falls into a broader category of

    Potentially Unwanted Programs (or PUPs). PUPs include root exploits,

    spyware, pervasive adware and Trojans (surveillance hacks)

  o 28% of mobile malware discovered in 2012 was designed to collect and

    profit from a user's personal data

  o 7% of malware was simply designed to make a user's device stop working

    (i.e., "bricking" their phones)

  o Looking ahead, NQ Mobile estimated that over 10 million devices have

    already been infected in the first quarter of 2013

Research Methodology

NQ Mobile's 2012 Security Report is based on insights from NQ Mobile's

Security Labs, as well as data collected from NQ Mobile's global malware

database, scanning engines and its network of hundreds of millions of

registered users.

To view a full copy of NQ Mobile's 2012 and 1Q 2013 Mobile Security Reports,

including charts and additional information on malware discoveries, please

visit NQ Mobile's blog at:

http://www.nq.com/2012_NQ_Mobile_Security_Report.pdf

http://www.nq.com/Q1_2013_NQ_Security_Dashboard.pdf

^1  App repackaging: Concealing malicious malware in a seemingly legitimate

app

^2 Malicious URLs: Fake URLs masquerading as legitimate URLs such as, banking

websites

^3 Smishing: Phishing by way of SMS messages