The Android Market may contain applications which could be considered as dangerous according to a whitepaper published by Smobile, a company which publishes mobile security software.
The whitepaper describes how they went about analyzing the applications available on the Android Market to figure out if they were potentially malware applications. They method is analyzing the permissions that the application requests on the user’s phone while being installed. I’m sure a lot of us just ignore the screen asking for the application’s permissions while installing it.
Here’s a reason you shouldn’t do that, but look carefully at what you’re authorizing:
3% of all of the Market submissions that have been analyzed could allow an application to send unknown premium SMS messages without the user’s interaction or authorization.
They also found applications in the Market which have the potential to brick your phone, apart from other potential spyware.
I do agree that this is from a whitepaper from a security company which sells, but based on what they say, I for one am going to pay special attention to the permissions an application asks for during installation. Just to be safe.