Exploits often have very distinct signatures. For example, z4root uses exploits to gain root access to a device. These techniques for privilege escalation can be known to an anti-virus program, an flag any app that contains similar API calls.
Lookout uses some advanced techniques. For example, it can determine the difference between adware, and an app with advertisements.
- Displays advertising outside of the normal app experience
- Harvests unusual personally identifiable information, or
- Performs unexpected actions as a response to ad clicks; appropriate user consent entails providing a clear alert in the application that
allows the user to accept or decline before any of the above behaviors
takes place
For runtime checks, it can observe dynamically generated content. For example, I could write a malware program that intends to send data to http://evil.example.org. If I hard coded that into the app, it would be flagged by their domain filters before being installed. If I instead set up a server at http://imnotevil.com, that would return a redirect to http://evil.example.org on the third request from an IP, it would need to be checked at run time.
I recommend reading their blog for the various exploits they've discovered.