Preinstalled software discovered on some Android smartphones covertly monitors users, transmitting all text messages and location information to China every 72 hours, according to U.S.-based security contractors.
The Chinese company that created the software, Shanghai Adups Technology, said the code is installed on more than 700 million devices including phones and cars, the New York Times reported Tuesday. At least one U.S. manufacturer, BLU Products, was affected by the software, with 120,000 of its phones running its code.
U.S. authorities said they are not yet aware whether the software is intended for advertising purposes or Chinese government surveillance.
"This isn't a vulnerability, it's a feature," a senior official at Kryptowire, the security firm that detected the software, told the Verge.
Kryptowire said the Adups software is preinstalled on phones and not disclosed to customers. The code surveils and transmits location information, contact lists, call logs, and text messages to a Chinese server.
Lily Lim, a California-based lawyer who is representing Adups, told the Times the company is not affiliated with the Chinese government. Adups told BLU executives that the software was not intended for American phones, but was rather created to help a Chinese phone manufacturer monitor user behavior.
The Department of Homeland Security said it was recently notified by Kryptowire about the software and is working with "public and private sector partners to identify appropriate mitigation strategies," according to a DHS spokeswoman.