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http://arstechnica.com/security/201...-backdoor-on-hundreds-of-thousands-of-phones/
Basically, they have all your information, and all your message you ever read/sent.Security firm Kryptowire has uncovered a backdoor in the firmware installed on low-cost Android phones, including phones from BLU Products sold online through Amazon and Best Buy. The backdoor software, initially discovered on the BLU R1 HD, sent massive amounts of personal data about the phones and their users’ activities back to servers in China that are owned by a firmware update software provider. The data included phone number, location data, the content of text messages, calls made, and applications installed and used.
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.