Secret app on millions of phones logs key taps http://www.theregister.co.uk/2011/11/30/smartphone_spying_app/ TL;DR = software from a Silicon Valley company known as Carrier IQ records in real time pressed key's.
What I'm more interested in than what it actually does is what purpose it is for, to be honest. As it is right now it seems like a giant keylogger.
Mostly probably consumer behavior. Example, keep sending ads from clothing stores to a shopaholic woman. They can sell the information about people to ad companies who can then sell their services to clothing companys. Those company's will buy ads from them because they know those ads will go to the people directly who are interested.
Which is exactly what I'm concerned about. Honestly I don't care too much about personalized advertisement. While maybe immoral I don't mind it that much. I do mind, however, that it seemingly logs everything, including all the passwords you enter.
Apple, HTC and Samsung uses this software.... 8 big companies are suing Carrier IQ now http://www.computerworld.com/s/article/9222424/8_companies_hit_with_lawsuit_over_Carrier_IQ_software