Unremovable Israeli Spyware on Budget Phones

Recent findings reveal that several budget smartphones come pre-installed with AppCloud, an application developed by an Israeli-founded company. Privacy advocates warn that AppCloud behaves like spyware.

SPYWARE ATTACK

11/26/20253 min read

Spyware on Phone
Spyware on Phone

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Unremovable Israeli Spyware Found on Budget Phones

This phone company is under intense scrutiny following revelations that several of its budget smartphones come pre-installed with an app called AppCloud, developed by an Israeli-founded company, which privacy advocates claim behaves like spyware. The controversy has sparked global concern over user privacy, data sovereignty, and corporate transparency. This news first appeared on Malwarebytes.com on their page reference blog/news/2025/11/budget-samsung-phones-shipped-with-unremovable-spyware-say-researchers

What Is AppCloud Spyware and Why Is It Controversial?

AppCloud is a system-level application found on many phones. It’s designed to recommend third-party apps to users, but what’s raised alarm is its deep integration into the operating system, making it impossible to uninstall without rooting the device, a process which voids warranties and poses security risks. The Israeli spyware app was developed by ironSource, an Israeli-founded company now part of Unity Technologies. While originally dismissed as bloatware, AppCloud has come under fire for its opaque data practices that mimics a spyware in functionality, persistent reactivation after updates, and the potential to collect sensitive user data like a spyware.

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Privacy Advocates Sound the Alarm

Digital rights organizations like SMEX have publicly criticized the company, accusing the company of compromising user privacy by embedding AppCloud that behaves like a spyware, into its budget devices. In an open letter, SMEX stated that the app’s behavior aligns with spyware characteristics, even if the company hasn’t officially acknowledged it as such. Security researchers have echoed these concerns, noting that AppCloud:

  • Accesses system-level permissions without user consent

  • Reinstalls itself after updates, even if disabled

  • Pushes unsolicited app recommendations, which may include adware or tracking software

  • Cannot be removed through standard Android settings

Israeli Spyware Global Reaction and Geopolitical Tensions

The fact that AppCloud spyware originates from an Israeli-founded company has added a geopolitical layer to the controversy. In regions with strained relations with Israel, such as parts of the Middle East and South Asia, users have expressed heightened concern over surveillance and data misuse. Social media platforms like X (formerly Twitter) have seen hashtags like #SamsungSpyware and #AppCloudExposed trend globally, with users demanding answers and calling for boycotts.

The Company Response: Silence and Ambiguity

Despite mounting pressure, the company has yet to issue a detailed public statement addressing the Spyware behavior found in AppCloud:

  • Why AppCloud is pre-installed on budget devices

  • What data the app collects and how it’s used

  • Whether users can opt out or disable the app permanently

This silence has only fueled speculation and distrust. Critics argue that the company's lack of transparency undermines its reputation as a privacy-conscious brand.

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Technical Breakdown: Why AppCloud Is Hard to Remove

AppCloud is embedded as a system app like spyware, meaning it resides in the phone’s firmware. Unlike user-installed apps, system apps:

  • Cannot be uninstalled without root access

  • Have elevated permissions, allowing them to interact with other apps and system settings

  • Can bypass user controls, such as disabling notifications or background activity

Even tech-savvy users who attempt to disable AppCloud report that it reactivates after system updates, making it a persistent presence on their devices, exactly as spyware behaves.

What Can Users Do?

For users concerned about AppCloud's spyware like behavior, the options are limited:

  • Rooting the device is the only way to fully remove the appcloud, but this voids warranties and may expose the phone to other risks.

  • Disabling notifications and background data can reduce its activity, though not eliminate it.

  • Using third-party firewalls or privacy tools may help monitor and restrict its behavior.

Privacy advocates recommend buying phones with stock Android or from brands that offers a clean OS builds without Bloatware pre-installed.

AppCloud Spyware Industry Implications

This controversy has broader implications for the tech industry:

  • Pre-installed apps are often overlooked in privacy audits, yet they can pose significant risks.

  • Budget devices are more likely to include such apps, targeting users with fewer resources and less technical knowledge.

  • Transparency in partnerships, especially with companies tied to surveillance or ad tech, is essential for consumer trust.

The company's situation highlights the need for clear opt-out mechanisms, user control over system apps, and greater accountability in software sourcing.

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AppCloud Spyware: Trust Eroded, Questions Remain

The presence of AppCloud on the company's budget phones has sparked a global debate about digital rights, corporate ethics, and geopolitical surveillance. Until the company provides clear answers and actionable solutions, the controversy is likely to deepen. For users, the takeaway is clear: privacy starts with awareness, and choosing devices with transparent software practices is more important than ever.

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