This is a major security compromise on the iPhone. As the smart phone get more widely used, we can expect more such stories. Users think that is typically a Microsoft software problem, but it isn't true. Microsoft code now is probably more defensively written than most others having gone through their bruising experience. Apple software is not technologically superior. It is superiority is in its design.
I expect more deja vu of Microsoft with Apple as I use more of their products.