Anyone out there remember all of those terrible pop-up trojan ads that used to claim to have detected a virus on your system as a way to download malware that would infect your PC and maybe even get you to hand over your credit card information? Well, it's back and it's on Android. Of course, if you're smart enough to realize 1) you don't need antivirus on Android if you stick with the Play Store or other trusted app store, and 2) you shouldn't sideload untrusted apps anyway, this scam won't be much of a worry.
The issue was found by Russian anti-virus company Doctor Web (which makes sense given that Russia is one of the top 3 most affected countries when it comes to Android malware, along with India and China). The Trojan shows itself as an in-app ad for anti-virus software, but if you open the link it will install a malicious app called Android.Fakealert.4.origin. From there, it will claim to detect viruses on your device, and try to convince you that your device has been compromised (which it has, but this app is the cause, not the solution). Eventually, the app will attempt to get you to hand over your credit card details in order to purchase full protection.
An old trick for a new market. Of course, as we mentioned, this shouldn't be much of a problem as long as people realize that the only way malware gets on Android is because users let it. If you don't sideload shady apps, you'll be fine. So, even if you don't have access to the Play Store, stick to trusted alternatives like GetJar or Slide ME and you should be okay.