It fixes the vulnerability that Flashback used to install itself; this Gizmodo article gives some more info to check:
1. Run the following command in Terminal:
defaults read /Applications/Safari.app/Contents/Info LSEnvironment
2. Take note of the value, DYLD_INSERT_LIBRARIES
3. Proceed to step 8 if you got the following error message:
"The domain/default pair of (/Applications/Safari.app/Contents/Info, LSEnvironment) does not exist"
If you don't get that error message, well, time to head to F-Secure for your fix. If you're clean so far, you can move on to step eight:
8. Run the following command in Terminal:
defaults read ~/.MacOSX/environment DYLD_INSERT_LIBRARIES
9. Take note of the result. Your system is already clean of this variant if you got an error message similar to the following:
"The domain/default pair of (/Users/joe/.MacOSX/environment, DYLD_INSERT_LIBRARIES) does not exist"
If you don't have any anti-virus protection enabled, you might want to check out the excellent (and free) Sophos Home Edition
Best Answer
You can follow these instructions from F-Secure to uninstall/remove the malware:
Run the following command in Terminal:
Take note of the value,
DYLD_INSERT_LIBRARIES
Proceed to step 8 if you got the following error message:
Otherwise, run the following command in Terminal:
Take note of the value after
"__ldpath__"
Run the following commands in Terminal (first make sure there is only one entry, from step 2):
Delete the files obtained in steps 2 and 5
Run the following command in Terminal:
Take note of the result. Your system is already clean of this variant if you got an error message similar to the following:
Otherwise, run the following command in Terminal:
Take note of the value after
"__ldpath__"
Run the following commands in Terminal:
Finally, delete the files obtained in steps 9 and 11.
Update:
Apple has released an official tool for uninstalling the malware. Read about it and download it on this Apple KB page.
F-Secure has also released a removal tool, which you can download here.