Mobile malware threats have surged 163% during 2012 to over 65,000, according to a new security report from NQ Mobile.

According to the report, app repackaging (concealing malicious malware in a seemingly legitimate app), malicious mobile URLs and smishing (phishing via SMS messages) were the main delivery techniques, while nearly 95% of all mobile malware was targeted at Android OS-based devices.

During 2012, mobile malware infected about 32.8 million Android based devices, which surged 200% compared to the number of Android devices infected in 2011.

The report warns that the problem has been more complicated as smarter mobile malware could highly target connected devices.

NQ Mobile Co-CEO Omar Khan said the security industry’s ‘discover-first-and-inoculate-second’ strategy is no longer enough.

"We need smarter systems that can discover threats before they infect consumers as well as more education so consumers can better spot and avoid these new mobile scams," Khan said.

In February a new mobile malware was found that is capable of transferring from an Android device to attack a PC via a USB connection.

China topped the list of markets for infected mobile devices followed by India, Russia, US and Saudi Arabia.

About 65% of the malware detected during the year comes under Potentially Unwanted Programmes (PUP) that includes root exploits, spyware, pervasive adware and Trojans.

During the year, about 28% of mobile malware was aimed at collecting and yielding a user’s personal data, with 7% designed to make users’ devices unusable.