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Think twice before buying a budget smartphone — it could have huge security problems

  • Blu smartphones have been pulled from Amazon for security concerns.
  • The devices are usually cheap Android smartphones that cost under $200.
  • Blu was in the spotlight last November after it was caught sending data back to China.


Handout: Blu smartphone
Blu

It might be good to think twice before buying a budget smartphone on Amazon.

A company named Blu recently had its budget smartphones yanked from Amazon's online store shelves after Amazon discovered a "potential security issue," according to CNET.

This is the second such time Blu has been in the spotlight for selling smartphones that reportedly send data back to servers in China. It was first under fire in November of last year after software was discovered collecting contacts and text messages, though Blu said it wasn't aware it was happening.

Blu, for its part, released a public statement this week denying that there is any spyware, malware or "secret software" on any of its smartphones. One has to imagine Amazon pulled the device for a very specific reason, however.

Keep this as a reminder that sometimes when you think you're saving money on a smartphone, you're actually putting yourself at risk. Smartphone makers need to make money one way or another, and if they're cutting the prices on devices, you have to wonder if they're selling data to help increase margins.

"We recently learned of a potential security issue on select BLU phones, some of which are sold on Amazon.com," Amazon told CNBC when reached for comment. "Because security and privacy of our customers is of the utmost importance, all BLU phone models have been made unavailable for purchase on Amazon.com until the issue is resolved. For more information, customers should contact BLU Products customer service at 1-877-602-8762 or service@bluproducts.com."