This story about 25-year-old Trevor Eckhart, an Android developer living in Connecticut, who recently focused attention on Carrier IQ software that’s installed on millions of mobile phones and which secretly forwards a record of everything done on each phone to company servers certainly caught my eye. At first Carrier IQ  categorically denied Mr. Eckhart’s claim  and retaliated with legal threats, but they backed off after the Electronic Frontier Foundation sided with him last week. Now he has posted a video demonstrating step-by-step how the software logs every keystoke, directly contradicting Carrier IQ’s statement.
By the way, it cannot be turned off without rooting the phone and replacing the operating system. And even if you stop paying for wireless service from your carrier and decide to just use Wi-Fi, your device still reports to Carrier IQ.
 Here’s more information about Carrier IQ from an actual geek.