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Yesterday I looked into a case where somebody had gotten a nice Christmas present - a new MP3 player. However this MP3 player contained a bit more than the person asked for. The device was infected with Worm.Win32.Fujack.aa. All the evidence clearly indicates the device was infected before the user opened the gift.
This is unpleasant, but infected removable storage media is nothing new. There was the case of infected Maxtor drives and Aleks recently blogged about his purchase of an infected Kingston flash card.
Of course, we've contacted the company concerned. They told us they were aware that a few months ago there was a partially infected batch of these MP3 players, and that they'd taken steps to fix the problem. It was only this particular model – the Victory LT-200 that was affected.
I've noticed there seems to be a lack of clarity about how Windows behaves with USB media, so this seems like a good opportunity to clear up a few points.