While this doesn't affect me given I don't lock my iphone, this is a potentially MAJOR embarrassment for Apple which is desperately trying to push the iPhone into the Enterprise market.

Now any corporate IT person watching that video would be picking their jaw off the floor in horror.

See info at Gizmodo

The equally scary thing is all those users commenting that 'it's no big deal' and that 'you shouldn't store important info on it anyway'..... HELLO??? Enterprise users? For those guys secure data IS everything and being able to snoop around people's emails, contacts, make calls and surf the internet on their supposedly locked handset ISN'T good security...

I love Apple too but when they screw up like that they need the heavy stick treatment....let's not forget if that was Microsoft people would be singing it from the roofs...

Patch away Apple...this 2.0 software has more bugs than an entomologists hive.

I don't passcode my phone, but I agree, it is a serious flaw.

Hum just downloading PwnageTool_2.0.3.1 But after seeing this I might wait as I'm sure Apple will have an update in the next day or so (well I hope so) thus rendering my pwnd phone unpwrd

This is quite the cockup that Apple didn't need. But I can see this being fixed very soon. Prepare for 2.0.3 peoples.

Apple should hang there heads in shame :P

Easily fixed though, even the article tells you

megga stuff up and particularly in the corporate world, Apple need to patch this quick. I can live without the quick access to Fav numbers if it means the phone stays locked.

But that's not a fix, that's a work-around. Most people will set the double click to Favourites.

comments removed due to slow.

Well atleast i know that if they do push out 2.0.3 that it won't be worth updating to. Rumored that 2.1 is on its way in september sometime (i think early). Mine has always been set to iPod anyways, favourites? I barely touch the thing. Let alone i don't even passcode lock the phone, it becomes a pain in the arse after sometime.

Overall, should be fixed which i agree.

Very true.

I work for a v large mining company, and nobody there locks their blackberry's. You pick one up and off you go, email, contacts, etc. May not be right, but that's what they do - and I'm also sure it's probably against company policy.

However I do agree that it needs to be fixed.

Wow. That is a major security flaw.

But don't forget the minor security flaw of the proper way. The numbers to unlock the phone are always in the same places. Fingerprints will mass up over the numbers for unlocking. If you tilt the iPhone to see the fingerprints, you just have to try all the combinations of four or 5 or however many popular regions of the screen (that is, if you can see a small enough number of mass fingerprinted areas) to unlock the phone. That unlock screen should at least have a scramble pad.

That's why I'm loving 1.1.4 - no problems here.

I don't use passcode lock, very annoying. What is more annoying though is that if you happened to leave your phone unattended and you have some bastard friends there is no way to stop them putting a passcode lock on your phone if they felt like being a**holes. Not that I ever leave it lying around (it's basically within visual range 24/7) but watch out if you have geek friends who have a grudge.

I wouldn't consider such people as friends.