To quote another Mac website,
Think before you Click!
and be aware of what the Software Update dialog box looks like.
Apple on Monday released a critical update to its version of Java for Mac OS X that plugs at least a dozen security holes in the program. More importantly, the patch mends a flaw that attackers have recently pounced on to broadly deploy malicious software, both on Windows and Mac systems.
The update, Java for OS X Lion 2012-001 and Java for Mac OS X 10.6 Update 7, sews up an extremely serious security vulnerability (CVE-2012-0507) that miscreants recently rolled into automated exploit kits designed to deploy malware to Windows users. But in the past few days, information has surfaced to suggest that the same flaw has been used with great success by the Flashback Trojan to infect large numbers of Mac computers with malware.
The revelations come from Russian security firm Dr.Web, which reports that the Flashback Trojan has successfully infected more than 550,000 Macs, most which it said were U.S. based systems (hat tip to Adrian Sanabria). Dr.Web's post is available in its Google translated version here.
Continued : http://krebsonsecurity.com/2012/04/urgent-fix-for-zero-day-mac-java-flaw/
From The Mac Security Blog: Apple Releases Java Update; Includes Fix for Vulnerability Exploited by Flashback Malware