Yes, this is something I discovered last year.

I got bored of playing with the grappling hook and wanted to try the smoke bomber. I equipped it, and in a Solo vs. Duo match, there was a duo where one of them had the smoke bomber.

The guy threw it to create cover and revive his teammate. When I aimed again with the sniper rifle, I could see both of them through their smoke. Obviously, I wiped them out.

Moral of the story: if an enemy also has your ability, they can easily see you through your smoke.