As more and more and of us live our lives via our smartphones, the more appealing those phones become to thieves and criminals. News now reaches us of two security researchers who have been able to access saved passwords from iPhones previously locked with a password.

The two researchers from the Fraunhofer Institute for Secure Information Technology (SIT) Jens Heider and Matthias Boll, used a modified jailbreak to crack an iPhone 4 running iOS 4.2.1. The crack installed an SSH server which launches upon booting by-passing the passcode. Then usuing a simple script they were able to grab all saved passwords on the phone including those for Wi-Fi networks and VPNs.

The pair admitted certain data was inaccessible thanks to Apple’s latest security updates to iOS 4 but worrying their overall conclusion is that should an iPhone fall into the wrong hands, owners should change all passwords which are stored on the lost iPhone ASAP.

Does mobile security worry you? What security measures haveĀ  you taken to protect your mobile internet usage?

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