Wired, and others are reporting on a research paper by Karsten Nohl and Jakob Lell. The paper apparently shows how any USB device (not just memory sticks) can be infected with malware at the firmware level. This can then be used to attack any device the USB device is attached to. As the malware resides in the firmware, even wiping the memory stick of data is insufficient, as the firmware remains untouched.
USB is such an entrenched standard; can this be fixed in the next version?
Bruce Schneier suggests that this is the kind of attack the NSA would favour.