Sprint and HTC apparently use a diagnostic application called "Carrier IQ" that can record keystrokes and even encrypted search terms on some smart phones.
Sprint and HTC say the software is used for ordinary diagnostic reports needed to help improve the performance of mobile devices and mobile networks. HTC, Sprint Acknowledge Using Carrier IQ Software
Thursday, December 1, 2011
HTC, Sprint Acknowledge Using Carrier IQ Software But Deny Snooping

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