I just read a very interesting article over at Techlicious which simplifies the story behind the all new Smartphone privacy threat.

"Ugh, not again. A researcher has discovered a program loaded on most iPhones, Android phones, BlackBerrys and Nokia phones that records every character you type on your phone.

This "keystroke logger" program, from a company called Carrier IQ, runs constantly in the background, without your knowledge, and records personal information and events ranging from phone numbers dialed to the content of text messages and information typed in to presumably secure websites.

Carrier IQ, the cell phone carriers and manufacturers seem to have been caught off-guard by this latest fiasco. Apple claims the software is no longer installed since iOS 5, though studies show that the data is still being collected on iOS 5 devices. While Sprint and Carrier IQ claim all the data is "anonymized", a claim we've heard before which has proven to be untrue.

Read the full Techlicious article here.

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