First iPhone Trojan horse reported
Seen more as a prank than an actual threat, a Trojan horse for the Apple iPhone, first reported on Saturday, has already come and gone. Still, users should be on the look out for a package called "iPhone firmware 1.1.3 prep," described as something you need to install before updating to the new 1.1.3 firmware. Billed as an "important system update," the code does little more than cause annoyance. According to various sources, once the Trojan is installed it simply displays the word "shoes."
However, the Trojan also overwrites several legitimate applications, including Erica's Utilities, Launcher, Doom, and OpenSSH, meaning that if you uninstall the Trojan, you will need to reinstall these applications later. This appears to be a consequence of poor programming.
The risk to iPhone users is now considered negligible since the host sites have all been taken down.
As antivirus vendor F-Secure concluded in its blog, "This time it was an 11-year-old kid playing with XML files who created the Trojan. Next time it might be someone else with more skills and with specific target."
As CNET's resident security expert, Robert Vamosi has been interviewed on the BBC, CNN, MSNBC, and other outlets to share his knowledge about the latest online threats and to offer advice on personal and corporate security. Listen to his podcast at securitybites.cnet.com or e-mail Robert with your questions and comments. 
unlocked iPhones.
be more accurate to read:
"Hacked iPhones Hacked to Death by Trojan!"
"Police Suspect Child's Play"
- You left out a few things...
- by scweezil January 8, 2008 7:12 PM PST
- You have to wonder why? Also you seem to mislead your readers by
- Reply to this comment
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(6 Comments)saying it Masquerades as a firmware update for the iPhone which it
does not:
The Trojan specifically targets users that have modded their iPhone
so they can install third-party applications. The application masks
itself as an update to Erica?s Utilities and is labeled as ?113 prep.