A bug has been discovered in Apple's iOS 5.0.1 OS that can allow a bad guy with a lot of time on their hands access to contacts, make calls and even use FaceTime on a password-protected iPhone.
The bug, which seems to have been first bought to light by iPhoneIslam.com, requires physical access to the handset, and is very involved. The process seems to involve confusing the handset after a missed call by either ejecting and reinserting the SIM card repeatedly or by being somewhere with no network coverage while trying to access the missed call.
Here's a video of the bypass in action ... I warn you though, it's not all that interesting! Skip to around 2:40 after the introduction to see the hack in action.
This bypass works on the iPhone 4S, iPhone 4 and iPhone 3GS.
I don't see this as being that much if a big deal, but it's certainly a bug and certainly requires fixing. I'm going to assume it will be fixed in iOS 5.1 or shortly afterwards.
Do you know where YOUR iPhone is?