If you’re an Android smartphone user, you’ve likely seen the warnings that spyware targeting that platform is legion, a claim that may be overblown. But for millions of Android, BlackBerry and Nokia users, the real threat to their privacy may be coming from authorized software installed on the phone by the handset maker.

Last week, Android app developer Trevor Eckhart warned that software from a company called Carrier IQ was transmitting all kinds of data back to the company – even information which is entered into secure websites.

According to Wired, Eckhart was threatened with legal action by Carrier IQ for calling its application a “rootkit”, software that is hidden and has privileged access to a computer’s systems. Eckhart also created a mirror of Carrier IQ’s software manuals, which are publicly available at the company’s site. Carrier IQ later apologized to Eckhart after the Electronic Frontier Foundation stepped in.

Carrier IQ says its software is used by handset makers for quality assurance purposes. It allows those manufacturers to learn about app crashes, dropped calls, undelivered texts, a Carrier IQ spokesman told Wired.

Read more here (including link to take it off your phone): http://blog.chron.com/techblog/2011/11/is-your-smartphone-spying-on-you/