Miller, a former employee of the National Security Agency who has a doctorate in computer science, demonstrated the hack to a reporter by using his iPhone’s Web browser to visit a Web site of his own design.

Once he was there, the site injected a bit of code into the iPhone that then took over the phone. The phone promptly followed instructions to transmit a set of files to the attacking computer that included recent text messages — including one that had been sent to the reporter’s cellphone moments before — as well as telephone contacts and e-mail addresses.

“We can get any file we want,” he said. Potentially, he added, the attack could be used to program the phone to make calls, running up large bills or even turning it into a portable bugging device.

http://www.nytimes.com/2007/07/23/technology/23iphone.html?_r=2&oref=slogin&oref=slogin