Read more here...Today, Adobe was alerted to what could be one of the first successful exploits of the Flash Player. All users are urged to update their Flash Player to the latest version immediately. The exploit is using a known vulnerability and all Flash Players except for the latest version are a target.
The Adobe Product Security Incident Response Team (PSIRT) blog has confirmed that this is indeed a working exploit after working with Symantech engineers. If you visit a site that is using the exploit, you'll be redirected to malware sites and possibly denial of service attacks. In the worst case, the malware can take control over the users computer. Apparently, the exploit is spreading and in active use.