Malware sneaking into Android market
According to a report filed by Google to the FCC [PDF], they removed about 1% of applications posted in the marketplace because they were suspected to be dangerous or were found to contain malicious code. While 1% may seem like a rather small number given the vast quantity of apps in their store, it's a big deal. Two of the apps removed were capable, and in a few cases, successful at gaining access to personal banking information and routing numbers.
The problem here is not so much that these apps were created. After all, they were removed and no one can blame a huge company like Google for a few blemishes on their otherwise great app store. The real problem is that it could happen on a much larger scale. The very nature of the Android OS and the store is very open and much larger problems could be brewing.