Another iPhone Security Hole in Password-Protected Mode
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.
http://gizmodo.com/5059690/another-i...protected-mode