I missed that story on the weekend, but apparently a fake patcher for the Sony PSP was distributed. The patcher removes important files on the Sony PSP that will make your PSP unusable.

German Heise calls this the first Sony PSP virus. Well it does not replicate yet, but the latest security hole in the Sony PSP firmware 2.0 is in the image viewer. Potentially a virus could be embedded in a background image users download from the Internet.
Fear of a virus can of course motivate Sony PSP users to update to the new Firmware 2.01, which is also now available for the US Sony PSP.