While this iPhone security hole isn't nearly as gaping as the last one we covered (which was fixed by Apple), it too exploits the emergency call feature in password-protected mode. In password-protected mode, there's an option to disable SMS preview, so if someone picks up your locked phone, they can't see incoming text messages. However, if you activate a locked phone's emergency call mode, and it receives a text message, it'll show you the full text in preview. And yes, this is with 2.1. Again, a sorta minor security oversight, but if you're super-secret about your texts (for whatever reasons), this is definitely a problem and needs to be fixed in the next update. [Karl Kraft via Daring Fireball]
Another iPhone Security Hole in Password-Protected Mode
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