http://conferences.sigcomm.org/sigcomm/2009/workshops/mobiheld/papers/p31.pdf

ABSTRACT
Modern mobile phones possess three types of capabilities:
computing, communication, and sensing. While these capa-
bilities enable a variety of novel applications, they also raise
serious privacy concerns. We explore the vulnerability where
attackers snoop on users by sniffing on their mobile phone
sensors, such as the microphone, camera, and GPS receiver.
We show that current mobile phone platforms inadequately
protect their users from this threat. To provide better pri-
vacy for mobile phone users, we analyze desirable uses of
these sensors and discuss the properties of good privacy pro-
tection solutions. Then, we propose a general framework for
such solutions and discuss various possible approaches to
implement the framework’s components.


They have some suggestions, but feel the problems are deep and probably not completely solvable.
                                                        -- Jerry


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