When connecting to a jailbroken iPhone, this tool allows a hacker to silently copy a treasure trove of user data from a compromised iPhone: e-mail, contacts, SMSs, calendars, photos, music files, videos, as well as any data recorded by any iPhone app. Unlike the ikee worm, which signals its presence by changing the iPhone's wallpaper, this hacker tool gives no indication that it has invaded an iPhone.
Hackers using this tool will install it on a computer - Mac, PC, Unix or Linux - then let it work. It scans the network accessible to it, and when it finds a jailbroken iPhone, breaks into it, then steals data and records it.
This hacker tool could easily be installed, for example, on a computer on display in a retail store, which could then scan all iPhones that pass within the reach of its network. Or, a hacker could sit in an Internet café and let his computer scan all iPhones that come within the range of the wifi network in search of data. Hackers could even install this tool on their own iPhones, and use it to scan for jailbroken phones as they go about their daily business.
Intego VirusBarrier X5 detects and eradicates this program on Macs, and identifies it as iPhone/Privacy.A. While it is not possible to protect the iPhone from this hacker tool - it does not install anything on an iPhone - VirusBarrier X5 can ensure that Macs, especially in businesses, are protected from this hacker tool being installed.
Unfortunately, the massive amount of publicity given to the dutch hacker who took over a few iPhones has probably led us to this point. Its likely that Apple will use this to cast jailbreaking in a negative light. Obviously this has nothing to do with jailbreaking. Only those who install OpenSSH without changing their default password are at risk. Its a situation similar to the problem with routers. Many if most not most people do not change the default password on their routers, leaving their entire network at risk.