'Jail broken' iPhones vulnerable to new virus

Hackers have built a virus that attacks Apple Inc.'s iPhone by secretly taking control of the devices via their Internet connections, security experts said.

The virus has been detected in the Netherlands and can only attack iPhones whose users have disabled some pre-installed security features, according to analysts monitoring the progress of the virus, known as the Duh Worm.

The hackers are trying to use the virus to obtain passwords to banking sites in The Netherlands, according to Graham Cluley, a researcher with anti-virus software maker Sophos. When an iPhone user tries to access a bank website, the Duh Worm directs the browser to a look-a-like site controlled by the hackers, Mr Cluley said.

The phones that are vulnerable are "jail broken" phones, where users disable key Apple security features to get around the terms of usage agreement that they are designed to enforce.

For example, Apple prevents users from switching service providers to unauthorised carriers and limits users to the approximately 100,000 programs that the company has vetted for installation on the device. There are thousands of unauthorised programmes covering areas including internet phone calls, WiFi access and pornography.

"The vast majority of customers do not jailbreak their iPhones, and for good reason. These hacks not only violate the warranty, they will also cause the iPhone to become unstable and not work reliably," said Apple spokesperson Natalie Harrison.

Three independent security experts said that it is best for iPhone users not to jail break their devices because the security risks are greater than the benefits.

"They're leaving their back door open. Everyone else knows what the key is to open that door," Mr Cluley said.