Modern browsers don't run Java applets any more. Many other improvements have been made in Mac and browser security. This specific thread has faded, but there are new security attacks. Stay vigilant.
(04/07/12) A serious security threat, a new variant of the Flashback malware, was noticed in April 2012. It attacks Macs that just visit an infected web page. It can infect your computer even if you do not input your password. The malware tries to steal financial passwords from your computer. It has been estimated that over 500,000 Macs have been infected.
What kind of web sites could get you in trouble? This time, it wasn't just porn sites: just reading blogs could trigger the attack. According to Kaspersky Labs, many thousands of WordPress blogs were compormised by an infected server plug-in that could infect Macs as well as PCs.
Flashback's main method of attacking Macs at this time was via Java. Other versions of Flashback, and other malware, exploit other weaknesses in web browsers, including Flash and JavaScript. It is still out there and mutating to try to exploit new holes.
(2017) The instructions below are for OS X 10.6 through 10.8. If you are running a more recent version of OS X, they won't apply. The safest thing to do currently is to disable your computer's ability to run Java applets in the browser, and in fact this has become the default. Also, Apple no longer distributes Java: the latest version is available from Oracle, if you need it.
(04/07/12) The Intego Security Blog described this attack. The solution was to protect your computer by installing an update for Java that Apple released on 04/03/12, using > to install it. It is usually a good idea to install security related updates from Apple .. I wait a few days and check MacInTouch to make sure others are not having problems. These updates are usually only available if you are running the most current versions of OS X, either 10.6.8 or 10.8.x: another reason to keep up to date.
(When you update your computer, also make sure your browsers, Flash and Word are up-to-date: there continue to be attacks on Macs using these packages.)
Many commentators complained that this fix came out too slowly. The Java vulnerability was known to Oracle in October 2011; they released a patch on February 14 2012. Apple was testing a Mac OS X upgrade for Java in mid-February. A version of Flashback that exploited the hole on Macs was observed in the wild at the beginning of March. Anti-virus productslearned to detect the Mac exploit in early April, and Apple released its update a few days later. Apple later (13 Apr 2012) released additional updates that disinfect your computer if it has been infected.
If you are running a version of OS X prior to 10.6, the Java upgrade will not be available to you until you upgrade your OS. If you have a PowerPC Mac, it can't run a version of OS X that has a security upgrade. In these cases, the best things for you to do are:
I do all of these.
The Mac anti-virus packages from Intego, F-Secure, Kaspersky, and many others, claim to detect and block this malware. (Subscriptions cost money, about $50/year/computer.) Anti-virus products are all about locking the barn door after someone's horse has been stolen. They reduce risk but don't eliminate it; they cannot block malware variants that have not been discovered yet. If you use them, you have to hope that future Mac malware will be noticed, and updates sent out to your computer, before you get infected. I have not tried any Mac anti-virus package yet, except the free ClamXAV malware scanner, which works OK.
If you got an unexpected request for your password while browsing some random web site, that's a bad sign.
You can check if your computer has extra libraries loaded when applications are run, which is a mechanism used by the malware. The instructions are from the F-Secure blog. To make sure your computer is OK, do this. Copy the following four lines into the clipboard:
defaults read /Applications/Safari.app/Contents/Info LSEnvironment defaults read /Applications/Firefox.app/Contents/Info LSEnvironment defaults read /Applications/Chrome.app/Contents/Info LSEnvironment defaults read ~/.MacOSX/environment DYLD_INSERT_LIBRARIES
In the Finder, open the Applications folder, open the Utilities folder inside it, launch the Terminal application. Paste the 4 lines. You should see:
MACHINE:~ USER$ defaults read /Applications/Safari.app/Contents/Info LSEnvironment 2012-04-07 18:42:31.865 defaults[26110:903] The domain/default pair of (/Applications/Safari.app/Contents/Info, LSEnvironment) does not exist MACHINE:~ USER$ defaults read /Applications/Firefox.app/Contents/Info LSEnvironment 2012-04-07 18:42:31.921 defaults[26111:903] The domain/default pair of (/Applications/Firefox.app/Contents/Info, LSEnvironment) does not exist MACHINE:~ USER$ defaults read /Applications/Chrome.app/Contents/Info LSEnvironment 2012-04-07 18:42:31.945 defaults[26112:903] The domain/default pair of (/Applications/Chrome.app/Contents/Info, LSEnvironment) does not exist MACHINE:~ USER$ defaults read ~/.MacOSX/environment DYLD_INSERT_LIBRARIES 2012-04-07 18:42:44.530 defaults[26113:903] The domain/default pair of (/Users/thvv/.MacOSX/environment, DYLD_INSERT_LIBRARIES) does not exist
The numbers will be different, of course. But you want four "does not exist" messages. If you see something else, then your computer may be infected. The Apple update removes the infection if it is found.
Understand that the malware writers are constantly trying new tricks, and that they will change their malware to evade detection and removal.