The U.S. Department of Homeland Security has warned users to disable or uninstall Java software on their computers, amid continuing fears and an escalation in warnings from security experts that hundreds of millions of business and consumer users are vulnerable to a serious flaw.

Hackers have discovered a weakness in Java 7 security that could allow the installation of malicious software and malware on machines that could increase the chance of identity theft, or the unauthorized participation in a botnet that could bring down networks or be used to carry out denial-of-service attacks against Web sites.

"We are currently unaware of a practical solution to this problem," said the DHS' Computer Emergency Readiness Team (CERT) in a post on its Web site on Thursday evening. "This vulnerability is being attacked in the wild, and is reported to be incorporated into exploit kits. Exploit code for this vulnerability is also publicly available."

Java users should disable or uninstall Java immediately to mitigate any damage.

The latest flaw, as earlier reported by ZDNet, is currently being exploited in the wild, security experts have warned. Alienvault Labs have reproduced and verified claims that the new zero-day that exploits a vulnerability in Java 7, according to security expert Brian Krebs.

As you can see below we tricked the malicious Java applet to execute the calc.exe in our lab.

Source : ZDNet

webdezzi: Security concerns will always surface every now and then since java applet can access local files