If you have jailbroken your iPhone, and haven’t changed the default root password then there is the possibility that your iPhone could easily be hacked, basically a hacker can log into your iPhone or iPod Touch and gain full control of your device.
This was the case when a Dutch hacker sent an SMS to iPhones that he had hacked because the root password was the default one, he was then charging people 5 Euros to remove his software from the iPhone.
Luckily it seems that the Dutch hacker has had a change of heart and decided not to charge people the 5 Euros, and is giving the software to remove his hack for free.
If you jailbreak your iPhone, make sure you change the root password straight away.
Ars Technica via 9 to 5 Mac
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