Researchers at Independent Security Evaluators say they have discovered a iPhone flaw that can give hackers control over the iPhone. In an article published in today's New York Times researchers using WiFi connection say they can gain access to an iPhone ceding control of the device. Researchers also say the hack can be achieved by tricking iPhone users into visiting a Web site with malicious code. The hack, ISE researchers say, can give intruders access to "any file" on the iPhone and allow a remote user to "make calls... or even turning it into a portable bugging device."
Here is a link to details on the ISE exploit.