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arrggg ago

This is exactly what you think it is.

Making a wifi access point map is what google got caught doing in 2013, when they were using streetview cars to scan and map wifi access points. Now they are using everyones smartphone and tablet to scan and map wifi networks, and to track you in realtime "for google maps".

Since android 4.3 google keeps pestering you to "enable wifi scanning for location accuracy", which will enable an always on wifi scanning for google and other apps even if you turn wifi off. You can disable it in android, the settings are hidden in advanced settings. You can test if you disabled it by going to google maps with gps and wifi off, it will complain if its really shut off.

You can also opt-out of their wifi access point map, but you have to actually rename your home access point to something_nomap. While you are in there, you might want to change your wifi password, because if you have enabled Google Backup on your phone they have access to that too. Google backup stores your access point passwords...

So yes, they are using this for tracking every phone\tablet with wifi enabled. Their database looks like this https://wigle.net/, and each android based data point includes a name, phone number, email, home address, picture of the house from the street, home access point name\ssid, and any access point name\ssid\password you have connected to.

That tinfoil hat might be a good place to store your phone.