SMSZombie is distributed via forums and China's largest third-party Android app store, GFan. The malware has been found in a number of wallpaper apps. Once started, these apps ask the user to install a package called Android System Service. What happens next is that these infected files gain administrative privileges on the device, which allows them to make payments to premium services or provide bank card details, as well as money transfer receipts.
Scary stuff, we tell you! Let's hope that Google and the other will do a better job when working on the security features of their mobile payment services. Although, as you know, no service is completely hack-proof.