Dutch security firm XS4All reports that a worm can infect iPhones and permit hackers to steal information from them. The worm, attacks iPhones that users have altered with software with which the phone can run programs not approved or supported by Apple.

The worm discovered by XS4All was directed at customers using their iPhones to conduct banking with ING Group a financial institution in the Netherlands. After taking over the device, the worm sends data from the phone to a server in Lithuania.

41st Parameter is a US security software company which also believes there will be a great deal of fraud from smart phones. Since the phone technology is so new, there are limited anti-fraud weapons available to combat it.

Cybercriminals are always looking for easy targets. Right now, smart phones are vulnerable targets. There will be lots of damage done before security catches up to the sophisticated technology used by cybercriminals. So be very careful when using your mobile phone to conduct private financial transactions