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The Nike+iPod kit has drawn positive attention in the media ever since its release earlier this year. According to the research of a team at the University of Washington, however, when used maliciously, it could be about as thrilling as having someone tap your phone or take pictures through your windows.
A doctoral student at UW, Scott Saponas, found that the transmitters on the device can easily be intercepted and used to track the movements of its wearer to incredibly accurate precision. The device only works within 60 feet of a tracker, but a committed stalker wouldn't have too much trouble managing that.
The students at UW have made a few devices for tracking Nike+iPod users. one takes the nano attachment piece of the kit and hooks it directly to a computer. A piece of software then shows the location of all users in range. And a more sophisticated version is REALLY scary.
So do as the kids say, yeah? Turn off your shoes when you aren't actually working out! The students also suggest that more stringent cryptography methods on the part of Apple and Nike could have prevented or mitigated this problem. I recommend you all read the full article and watch the video the students worked up to show the potential for abuse here.
Nike+iPod Sport Kit raises privacy concerns[University of Washington News Service]