New virus hacks jail-broken iPhones

According to analysts monitoring the progress of the attack, the virus has been detected in the Netherlands and can only affect users who have disabled certain pre-installed security features through jail-breaking.

It is believed that hackers obtain passwords to banking sites using the virus known as the Duh Worm when an iPhone user tries to access a bank website. The worm then redirects the user to a look-a-like site controlled by the hackers.

A spokeswoman for ING Group said the Dutch banking giant discovered a criminal network that attempted to steal banking credentials via hacked iPhones. Dutch clients of ING have been targeted, but there was no indication that clients outside the Netherlands have to worry, she said.

"People who use their iPhones in a regular way have nothing to fear," she added.

Apple officially prohibits its users to jail-break their iPhones due to security reasons. For example, Apple limits users to the approximately 100,000 programs that the company has vetted for installation on the device. There are thousands of unauthorized programs 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 spokeswoman Natalie Harrison.