From Kryptowire:
KRYPTOWIRE DISCOVERS MOBILE PHONE FIRMWARE THAT TRANSMITTED PERSONALLY IDENTIFIABLE INFORMATION (PII) WITHOUT USER CONSENT OR DISCLOSURE
Kryptowire has identified several models of Android mobile devices that contained firmware that collected sensitive personal data about their users and transmitted this sensitive data to third-party servers without disclosure or the users' consent. These devices were available through major US-based online retailers (Amazon, BestBuy, for example) and included popular smartphones such as the BLU R1 HD. These devices actively transmitted user and device information including the full-body of text messages, contact lists, call history with full telephone numbers, unique device identifiers including the International Mobile Subscriber Identity (IMSI) and the International Mobile Equipment Identity (IMEI). The firmware could target specific users and text messages matching remotely defined keywords. The firmware also collected and transmitted information about the use of applications installed on the monitored device, bypassed the Android permission model, executed remote commands with escalated (system) privileges, and was able to remotely reprogram the devices.
The firmware that shipped with the mobile devices and subsequent updates allowed for the remote installation of applications without the users' consent and, in some versions of the software, the transmission of fine-grained device location information. The core of the monitoring activities took place using a commercial Firmware Over The Air (FOTA) update software system that was shipped with the Android devices we tested and were managed by a company named Shanghai Adups Technology Co. Ltd.
Much more at the site - the infection is deep and operates without the user being aware of its presence. Because the software is pre-installed, any anti-virus software thinks it is OK and does not signal.
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