The Mocmex virus and other trojans have been found on digital photo frames from China sold at Target, Costco, Sam's Club, and Best Buy. The photo frames are connected to a computer via USB to load photographs; on a Windows machine this will cause an executable stored on the photo frame to run, infecting the computer.
The SANS Internet Storm Center has documented more details here and here.
As more and more devices have built-in storage and can be connected via USB to PCs, we'll see more and more attacks like this.
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