Android OS isn’t immune to attacks as the recent Skype vulnerability demonstrates.
The current Android version of Skype doesn’t encrypt profile information or chat history leaving it open to a third-party app to access.
Skype does say they are working on a fix, but are also taking this opportunity to release a public service announcement reminding everyone to carry out due diligence when installing third party apps:
To protect your personal information, we advise that you as always take care when selecting which applications to download and install onto your device from the Android Marketplace.
This should also extend to installing apps from any location, not just the Android Marketplace.
Always check comments and check what an app has access to and judge for yourself if there is a risk.
What do you think about the state of security with Android OS?
UPDATE: Skype for Android security upgrade now available in the Android Market.