Knock-off Smartphone Sends Info Back to China

A cheap brand of Chinese-made smartphones carried by major online retailers comes pre-installed with espionage software, a German security firm has said.

G Data Software said it found malicious code hidden deep in the propriety software of the Star N9500 when it ordered the handset from a website late last month. The find is the latest in a series of incidents where smartphones have appeared preloaded with malicious software...
G Data said the spyware it found on the N9500 could allow a hacker to steal personal data, place rogue calls, or turn on the phone's camera and microphone. G Data said the stolen information was sent to a server in China.
Bjoern Rupp, chief executive of the Berlin-based mobile security consultancy firm GSMK, said such cases are more common than people think. Last fall, German cellphone service provider E-Plus found malicious software on some handsets delivered to customers of its Base brand. (more)