A group of Israeli researchers explored the security of the Visual Studio Code marketplace and managed to "infect" over 100 organizations by trojanizing a copy of the popular 'Dracula Official theme to include risky code. Further research into the VSCode Marketplace found thousands of extensions with millions of installs.
That headline is quite misleading … the malicious extension only had a few hundred installs, not millions. They just copied an existing extension that does have 7 millions installs. They did went quite far by registering a URL. Of course it is bad that stuff like this manages to get on the store, but as long as you check what you are installing, you should be fine.
Not quite. Their “malicious” extension only got a few hundred installs. Using the data gathered by that extension and via other means they were able to locate other actually malicious extensions. Those total in the millions of installations.
Ah it makes more sense that way, I didn’t read the title as if they were talking about all the extensions that they found summed together. This does make it really clear that you should always check extensions when installing them, and not just install extensions with a low install base from an unknown author.