As countries focus on brands like Huawei for potential espionage, Chinese budget phones from other brands with preloaded malware pose a much greater security risk.
Security researchers have discovered that low-cost Chinese phones, many of which are owned by a brand called Tecno, come with malware that steals money. A report by BuzzFeed News and Secure-D reveal that several Chinese mobile phone brands are scamming the poor, especially in developing countries where people can't shell out a lot of money for smartphones.
Tecno is a brand belonging to the Chinese mobile manufacturer Transsion. Several Tecno W2 phones, shipped to countries around the world, are infected with malware intended to steal money and data from users.
Malware such as Triada and xHelper, commonly found in these phones, downloads apps silently and automatically subscribes to paid services. This often results in unexpected bills and data expense for those already residing in some of the world's most disadvantaged places.
Theft of malware money from Chinese phones
The concept of malware preinstalled on smartphones is not entirely new. In the past, brands like TCL have also faced similar issues.
But the fact that these phones come bundled with notorious malware like Triada and xHelper is concerning. They often launch pop-ups on the screen and cause unwanted application installations. Making it worse is that they cannot be deleted with a simple factory reset.
These phones are heavily marketed in African countries, such as Egypt, Ghana and South Africa. Many of these devices also reached Indonesia and Myanmar. According to Secure-D, between March and December 2019, it had to block 844,000 malware transactions.
Response from Chinese manufacturers
Transsion, the Chinese company that owns the Tecno brand, cited an "anonymous supplier in the supply chain process" as the reason behind the preloaded malware. He claims to have even provided security fixes for Triada in March 2018 and xHelper at the end of 2019.
But the problem persists. Secure-D said it is blocking Triada and xHelper on Transsion phones even as of April 2020, and may just be dormant for now.
The results
While there is no evidence to prove that Transsion is responsible for this, it certainly does not help the already deteriorated reputation of Chinese brands. Right now, many customers are worried about their purchasing options and this creates doubt in the minds of many potential buyers.
Brands like Tecno thrive because it is one of the few brands to offer devices to low-income buyers at affordable prices. If these buyers avoided companies like Tecno, they might not have many options in the end.