Malicious code and other attacks that exploits Facebook has been predicted to increase in 2011, by several security companies. Now the security company Sophos reports about an application that os ment to display images but, is in fact a worm.

According to Sophos a link to the application is spread via Facebook Chat. This is a normal Facebook application from app.facebook.com. When installed, it askes the user to download an executable file that starts with “facebook photos”, and it is this file that infects the user. Then the application sends the same link to the users contact list.

The application was discovered during the weekend and when Facebook learned about it they removed the app. Sophos warns, however, that there may be other applications that behave in the same way.

Internet worms that spread via Facebook Chat is not a new phenomenon. Often, this is where the short messages like, “Is this you?”, followed by a malicious link.

So as always, be aware of what applications you accept, and in particular .exe files.

(via TechWorld)