iPhone Attack Reveals Passwords In Six Minutes
angry tapir writes "Researchers in Germany say they've been able to reveal passwords stored in a locked iPhone in just six minutes and they did it without cracking the phone's passcode. The attack, which requires possession of the phone, targets keychain, Apple's password management system. Passwords for networks and corporate information systems can be revealed if an iPhone or iPad is lost or stolen."
OR you could read the PDF which states CLEARLY:
"The results were taken from
a passcode protected and locked iPhone 4 with current firmware 4.2.1. "
That is the latest iOS and the latest iPhone, mind you.
http://www.sit.fraunhofer.de/en/Images/sc_iPhone%20Passwords_tcm502-80443.pdf