Motivated by recently surfacing viruses that can spread over the air interfaces, in this article, we investigate the potentially disastrous threat of node compromise spreading in wireless sensor networks. We assume such a compromise originating from a single infected node, can propagate to other sensor nodes via communication and pre-established mutual trust. We focus on the possible epidemic breakout of such propagations where the whole network may fall victim to the attack. Using epidemic theory, we model and analyze this spreading process and identify key factors determining potential outbreaks. In particular, we perform our study on random graphs precisely constructed according to the parameters of the network, such as distance, key sharing constrained communication and node recovery, thereby reflecting the true characteristics therein. Moreover, a comparative study of the epidemic propagation is performed based on the effects of two types of sensor deployment strategies, viz., uniform random and group-based deployment. The analytical results provide deep insights in designing potential defense strategies against this threat. Furthermore, through extensive simulations, we validate the model and perform investigations on the system dynamics. Our analysis and simulation results indicate that the uniform random deployment is more vulnerable to an epidemic outbreak than the group based deployment strategy.