Cyber spies are going after SIM cards.
I'm Bridget Carey and this is your C/net update.
It has been reported that American and British governments hacked into the computers of a SIM card supplier.
To steal encryption keys to billions of SIM cards.
Essentially, letting governments spy on phone conversations and data transfers at will, without a warrant.
Gemalto, the company that provides those SIM cards, investigated the hacking claims and says there was no major theft of its encryption keys and customer data.
However it admitted that it was a victim of a sophisticated hack in 2010 and 2011, and that was likely carried out by the National Security Agency and UK spy agency, GCHQ.
Jim also said that in that hack, it's possible some encryption keys for older 2G networks were compromised.
This accusation all started from documents leaked by former NSA contractor, Edward Snowden.
Saw the NSA worked with the GCHQ to hack Gemalto, which provides mobile SIM cards to major telecom companies around the world like Vodafone, Verizon, and China Mobile.
The NSA and GCHQ have not commented.
It's hard not to be left wondering who to believe, or even what companies you can trust with security.
There are smartphone apps that can give you an extra layer of encryption if you're concerned about eavesdropping.
To make an encrypted phone call use Signal on iOS and the app RedPhone on Android.
Both are created by the company Whisper Systems.
Also Silent Circle makes another suite of encryption apps.
If the world of cyber espionage hasn't turned you away from using smartphones altogether, well maybe you'll be interested in a brand new cheap smartphone from Motorola.
The updated Moto E is only $150, that's without a contract, full price.
It's smaller than todays monster phones but you can.
Customize it with color bands that you snap around the edge.
It comes with the latest version of Google's operating system, Android Lollipop, and it runs on 4G LTE networks.
It's also on sale in the UK, and it's going to be coming to more than 50 countries.
If you want a smartphone with more old school style.
Verizon is selling the Blackberry Classic for $100, it comes with a keyboard, and a $50 rebate, so you basically get it for 50 bucks.
It hits Verizon's website on Thursday, and arrives in stores next week, and speaking of old school, Netflix is expanding it's kids programming line up.
With a reboot of Inspector Gadget.
The new version aired on TV in Europe, but it's going to come to the US in March on the streaming service.
And that's not the only returning toon.
Cartoon Network is making more PowerPuff Girls.
And Disney just announced it's rebooting Duck Tales to air on Disney XD in 2017.
Moe Duck Tales?
That's your tech news update.
There's always more at www.cnet.com.
From our studios in New York I'm Bridget Carey.