So even Homeland Security has come down and stated that Java is not secure. But Java isn't the headline news at 11 PM yet, nor is it the headlines of the Wall Street Journal or even PC Magazine or Wired.
So let's not get too worked up about this.
But let's be safe. If you need or want Java, then go to Java.com and install the latest version.
Then, open Java from your Control Panel, click the Security tab and deselect "Enable Java in the browser." Then, change the Security Level to Very High. Hit OK.
If you need Java, then simply re-enable it. Otherwise, leave it off. I haven't had to turn it back on since turning it off a week ago.
Also, do not rely on Java to tell you if your version is up to date. Check it here. Lastly, check to see if older versions of Java are still installed. Remove them from Programs & Features in Windows Vista & newer; from Add Programs in Windows XP and older.
Sometimes it's best to wear a raincoat or carry an umbrella. Oh, and Java is free.
02/25/13 - Update - Java is now up to 7.15 (Version 7 Update 15).