Microsoft has moved to quell fears that Windows 8 is building up a detailed record of all applications stored on client machines via its SmartScreen application.
An analysis by security researcher Nadim Kobeissi noticed a potential privacy violation in Windows 8's
SmartScreen system, which checks applications that the user wants to install against a database of known dodgy code and warns the user if Redmond's records suggest there may be a problem.
"The big problem is that Windows 8 is configured to immediately tell Microsoft about every app you download and install," Kobeissi wrote. "This is a very serious privacy problem, specifically because Microsoft is the central point of authority and data collection/retention here and therefore becomes vulnerable to being served judicial subpoenas or National Security Letters intended to monitor targeted users."
To make matters worse, the install logs are sent to Microsoft and can be snooped by third-parties, the researcher claims, since the mechanism supports the SSLv2 protocol which is known to be breakable. While it's possible to turn off SmartScreen, it's not easy, and the OS will remind you periodically to turn it back on.