A "so-called" researcher has found key logging software on an HTC Android 
phone. The key logger cannot be disabled and is on automatically -- there is 
neither opt-in or opt-out options and one of the key logger's processes is 
hidden from the running process list. Every single phone keypad key-press is 
recorded as is every URL entered into the browser, even if the browser is using 
Google secure search mode. The users position is also reported even if the user 
has opted out of the location service.

I am not sure how widespread this software is or which carriers are involved 
but the article says the software is on millions of phones. It is also not 
clear yet if anyone is receiving this information but it is certainly in the 
log on the phone.

Here is a 17 minute video which I watched in its entirety because it interests 
me, but you may want to skip to the middle where he shows the key logging in 
action

http://www.wired.com/threatlevel/2011/11/secret-software-logging-video

This is a bit of a black eye for the open-is-better Android bunch where rather 
than open software what they are really running is a version that their carrier 
has tampered with and they have not even been aware of this. If the carrier had 
done a slightly better job of covering its track, not even the researcher would 
have noticed.

Cheers,
Carlo
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