Police are warning Android users about a new trojan which can steal money from victims' PayPal accounts.

Researchers have discovered a new malware which is capable of stealing money from a PayPal account despite the app's two-factor authentication.

The fake software from a third party app store, which disguises itself as a 'battery optimiser', deletes itself as soon as it's installed before notifying the user of a problem with their PayPal account.

A spokesman for Dorset Police's cyber crime unit said: "If you're not paying attention, and you grant it the permissions it asks for, logging in to PayPal will result in $1000 being transferred every five seconds, until your bank account hits zero.

"Stay safe out there, and don't venture too far from those legitimate app stores."