Wasn't sure if anyone else has read / seen / heard about this, but a co-worker pointed it out to me.
Researchers to demo rootkit on Android phone | Security Management | ZDNet UK
The link posted at the top is to the full article about this.Security researchers plan to demonstrate a rootkit running on an Android-based smartphone that could give an intruder full access to all the functions of the device.
Nicholas Percoco and Christian Papathanasiou are scheduled to make the demonstration at the Defcon security conference in Las Vegas in July. The researchers, from security firm Trustwave, will show that the kernel-level rootkit is capable of reading the text messages on an Android phone, making unauthorized long-distance calls, and pinpointing the device's location via GPS, according to the conference program.
The malware is activated by an incoming call from a "trigger number," upon which it sends a shell to the attacker, allowing them administrative access via a 3G or Wi-Fi connection. A shell is a piece of software providing an interface to an operating system kernel.