Recently it was discovered that almost EVERY smartphone including the iPhones and Blackberries have a program installed from a company called Carrier IQ. This program is hidden deep in the phones, cannot be turned off, and
cannot be removed easily. It also has complete access to everything on your phone including your address book, SMS, and even what you type.
This includes information that you type into other apps and the web browser, even if you think it's supposed to be secure. Stuff like web banking, credit card information, and Intranet user ID/Passwords. On top of that, the people that made this program, placed no security on it, so hackers are free to hijack the program for their own use.
In essence, almost every smartphone out there has been bugged, and it's solely up to the carrier if they respect your privacy, or data-mine your personal information without your consent. On another note: the California Supreme Court says that the police can search your phone without a warrant http://bit.ly/t3znHz So then why do it in person, when they can search everyone's phones remotely?