Smart phones these days are used as much if not more than computers to search the web and for the mobile person it's almost a necessity. Many think their information is safe because they use a phone and not a computer. This is not the case, according to a security researcher Trevor Eckhart has found evidence of hidden software that is installed on all stock phones relating to the makers of Android, Blackberry, and Nokia devices. The problem has gained such notoriety that Carrier IQ had to threaten Trevor with legal action. Trevor's findings revealed key logging, battery monitoring, and user experiences.
Trevor put out a video on his findings
So far Trevor claims Carrier IQ's application is spying on people and Carrier claims it's not. While we revel in the thought that certain software is there to make a summarized report on the performance of the phone, how would you feel if that same software was making key logs of everything you type, what you look at, and where you are. Be informed, not everything is as simple as you think.
Source: Researcher: Secret software tracks phone users
Additional Info: Wired