Magento can’t upload images after CE 126.96.36.199 / SUPEE-7405 updateTheWebsiteGuy
After the recent Magento update which included patch SUPEE-7405 it appears many people have an issue uploading images through the Magento backend. As part of the SUPEE-7405 patch Magento has increased security around the upload and checking of images to prevent malicous content.
The permissions for folders/files created when uploaded are too restritive, they where 777 and now after the recent update are 750 for folders and 640 for files.
To fix this issue I had to revert change the permissions to more realistic values, 775 for folders and 644 for files. These can be changed here;
line 219, change 0640 to 0644
line 541, change 0750 to 0755