Researchers have identified the first iPhone Trojan, although the indications are that it's not a huge risk. The first reports came from an iPhone enthusiast site, Modmyiphone and were later confirmed by security research company F-Secure.
The Trojan specifically targets users that have modded their iPhone so they can install third-party applications. The application masks itself as an update to Erica's Utilities and is labeled as "113 prep."
According to Modmyifone all the app does is say "shoes." However, when uninstalled, the application removes files from the /bin directory on the iPhone, breaking valid apps like Sendfile and Erica's Utilities.
The website hosting the application was taken offline soon after it was discovered, reports F-Secure.
"Hopefully this serves as a warning for those who have opened their iPhones using a security hole in the system and then installing unverified software without a second thought to what they are doing," said F-Secure.
F-Secure reported that it was an 11-year-old kid playing with XML files who had created the Trojan. "Next time it might be someone else with more skills and with specific target," they said.