David Pogue's weekly NYP report was where I saw this first:

"An Actual Mac Virus Surfaces. For 28 years, Mac fans have been smug thinking that there haven’t been any significant virus or spyware outbreaks for the Mac. Windows-heads live their lives in fear, gumming up their PCs with antivirus software and spraying Lysol on their mice after opening every e-mail attachment.

But now there’s Flashback, a “Trojan horse” that masquerades as an Adobe Flash installer. Once installed, it fiddles with your Web search results to direct you to sites of its preference. According to some estimates, 600,000 Macs were infected (although that number has dropped by half since countermeasures were made public).

Preventing it is easy: use your Mac’s Software Update program and accept the latest Java update. Detecting and removing it is also easy: download this free removal program from F-Secure.

Does this mean the era of Mac-owner smugness will finally come to an end?

Don’t be silly."

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Then from Software Update:

"Java for OS X 2012-003 v 1.0  66.8 MB

This Java security update removes the most common variants of the Flashback malware.

This update also configures the Java web plug-in to disable the automatic execution of Java applets. Users may re-enable automatic execution of Java applets using the Java Preferences application. If the Java web plug-in detects that no applets have been run for an extended period of time it will again disable Java applets.

This update is recommended for all Mac users with Java installed.

For details about this update see: http://support.apple.com/kb/HT5242"

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May be old news but some may not have seen it.

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Regards from brianF
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