Researchers Karsten Nohl and Jakob Lell created a proof-of-concept malicious malware, BadUSB, highlighting how fundamentally the USB security is broken. The malware resides in the firmware of the USB device. Currently there is no way of knowing if the firmware has been altered... Great!
Take a look at the article here: http://www.wired.com/2014/07/usb-security/
That’s the takeaway from findings security researchers Karsten Nohl and Jakob Lell plan to present next week, demonstrating a collection of proof-of-concept malicious software that highlights how the security of USB devices has long been fundamentally broken. The malware they created, called BadUSB, can be installed on a USB device to completely take over a PC, invisibly alter files installed from the memory stick, or even redirect the user’s internet traffic. Because BadUSB resides not in the flash memory storage of USB devices, but in the firmware that controls their basic functions, the attack code can remain hidden long after the contents of the device’s memory would appear to the average user to be deleted. And the two researchers say there’s no easy fix: The kind of compromise they’re demonstrating is nearly impossible to counter without banning the sharing of USB devices or filling your port with superglue.
“These problems can’t be patched,” says Nohl, who will join Lell in presenting the research at the Black Hat security conference in Las Vegas. “We’re exploiting the very way that USB is designed.”