Yes boys and girls, another nasty bit of Android malware has been spotted in the wild. This particular one, dubbed Simplocker, is a form of ransomware, meaning it does nasty things to your device until you pay a ransom to the attackers to make the nastiness stop. This one is unique in that it is the first one that will actually encrypt the data either on your external SD card or your device's internal storage until the ransom is paid. At this point, it appears that this one is targeting users in Russian speaking countries who download a, ahem, "naughty" file from a third party app store. But now that the proof of concept is out there, it's a matter of time before more bugs of this type start popping up elsewhere. So, you know, be careful about the places from which you download things, don't allow your device to install apps from unknown sources unless you really know what you're doing, etc., etc. More info about Simplocker can be found.
Source: Techworld, thanks to CMH714 for the tip!