It seems to imply that once the link is clicked it downloads and runs the payload automatically, but this is rather hard to believe (I would guess that there is some user action required).
Is the article correct?
Is the article correct?
So yes, it is possible for the "trojan" to work as described.
The applet has full access to the local filesystem with the same priviliges the original user has. If needed the hackers can further exploit the machine, by escalating user priviliges with some corrupt scripting..
One click is enough to seriously damage your machine, be careful;) This is what the popup looks like in Firefox http://www.ussu.ca/studentgroups/JavaApplet.jpg