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SecDroid hardens the android kernel by disable certain binaries that have internet access or can be used as an attack vector and by securing the TCP Stack using Systctl. This helps prevent some MITM (Man-In-The-Middle) and Spoofing attacks. It may also prevent some DOS (Denial-Of-Service) Attacks.
Disabled services include SSH, SSHD, Telnet NC (net cat), and Ping, to keep others from gaining access to your device via a remote terminal. SecDroid also disables Package Manager so that no apps can be installed remotely to your device (you can still install them from Market or using APK files directly on the device itself). Lastly, it also allows you to disable ADBD (the ADB service running on the device that allows you to connect to it through command line from a remote computer) until the next reboot.