China starts the war against Android phones

China is taking actions to crack down on Android running mobile phones. The measures aim to involve network operators, target retailers and ensure that selling handsets featuring pre-installed Trojans is explicitly illegal. The authorities plan to set up a central unit to manage complaints, though it seems the scam has been going on long enough to build up considerable momentum.

Chinese customers have been buying cheap handsets that are generally unbranded with only some of them bearing fake logos. Once consumers start using their Android-based handsets the devices begin sending text messages or making silent calls. While the transactions only incur small amounts of 20 pens a time in the hope the user will never notice crooks collect good cash.

The amounts are small, but the idea is to collect it over a long period, enabling the handset to be sold very cheaply and thus feeding a virtuous circle that benefits everyone - except the poor sap who thought he was getting a cheap Android handset.

"I think the software industry lacks a better business model, they can only make these knock-off and money-sucking software in order to survive," said Zhao Wei, CEO of Chinese security company Knownsec, according to PC World. "This is fast becoming an industry in itself."