History repeats itself, as safety trade-offs occur when a product's security layers are altered for ease-of-use or greater functionality. There is very limited exposure for this new threat that F-Secure is currently analyzing. It only impacts devices where Apple's original security safeguards for the iPhone are intentionally altered through a process called "Jailbreaking".
Read the analysis here.
QUOTE: "it only affects Jailbroken iPhones which have SSH installed and have not changed the default password. This one connects to a web-based command & control center running in Lithuania. The worm is not widespread, but it is much more serious than the first iPhone worm as it seems to try to steal information from the devices."
Other useful reads:How it works
http://www.net-security.org/malware_news.php?id=1144
Ikee - First iPhone Worm impacts "Jailbroken iPhones"
http://www.f-secure.com/weblog/archives/00001814.html
What are "Jailbroken iPhones"?
http://en.wikipedia.org/wiki/Jailbreak_%28iPhone_OS%29
How to change root password in "Jailbroken iPhones"
http://www.f-secure.com/weblog/archives/cydia.htm