A new incident of malware attacking jailbroken iPhones is the most malicious yet, targeting mobile banking and capable of hijacking the device for use in a botnet and stealing personal data, according to several security firms.

So far, the iPhone (and iPod Touch) worm is isolated to jailbroken iPhones in the Netherlands, though it's much nastier than its predecessor that surfaced a few weeks ago, and it has the ability to spread more widely, security firms Sophos and Intego have reported.

Jailbreaking is the practice in which device owners hack their iPhones or iPod Touches to enable them to run applications not approved by Apple, a method that the company obviously does not recommend due to the security and performance issues that may result.

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