Remember when everyone freaked out for a hot second because it looked like Apple was tracking your every movement? Well, users of nearly every phone out there, you are not going to like this. Security researcher Trevor Eckhart seems to have found a piece of "diagnostic software" created by a company called Carrier IQ that phone carriers have been installing on phones so as to spy better serve you.

What's the software capable of? Why, it can secretly record user data including keystrokes and web browsing history. Exactly what the software knows, where it is installed (the company says it has software on more than 140 million phones), and who it sends its info to is still being worked out, but this does not look good—no matter what press releases from Carrier IQ says.

The software, which you can see in action below, is installed by carriers—which means if you want to get rid of it you need to root your phones. And it isn't just on Android and BlackBerry devices—there is evidence of it on pretty much every brand of phone, including Apple iPhones (though it seems to do less on them). How bad does this keylogger look? Though the story is still quite fresh, the government, led by Al Franken, is already starting to ask questions of Carrier IQ.

For its part, Carrier IQ hasn't talked to the press about its software, but insists that what it is doing is all for the good. How else can carriers diagnose phone problems if they don't keep track of everything you do on your phone and then maybe send it back to the mothership, right? Per the company:

While we look at many aspects of a device’s performance, we are counting and summarizing performance, not recording keystrokes or providing tracking tools. The metrics and tools we derive are not designed to deliver such information, nor do we have any intention of developing such tools. The information gathered by Carrier IQ is done so for the exclusive use of that customer, and Carrier IQ does not sell personal subscriber information to 3rd parties. The information derived from devices is encrypted and secured within our customer’s network or in our audited and customer-approved facilities.

All of this is very much still developing, but if you are sufficiently freaked out, here's how to get Carrier IQ off your phone. Suddenly we're less worried about malls using phones to track our movements!