Android malware isn't exactly a new problem, but this is a fresher variant: software that tries to install on your phone when you visit an infected site. Fortunately, it's easy to avoid.
Infections via web sites are a common problem with computers, and are often referred to as 'drive-by downloads' as some can install themselves without the user even noticing. Symantec reports that the newly-discovered Android.Notcompatible trojan doesn't fall into this category, as it still requires the phone owner to manually agree to installation. The malware pretends that it is a security update to try and con users into accepting it.
To avoid the issue, make sure you don't accept any unexpected security prompts while browsing on your phone. That issue highlights why security software for Android phones is useful. It also reinforces one of our key pieces of advice about Android malware: being careful about permissions and installations is a virtal security strategy.