A new iPhone worm has been created, this time posing a very serious threat as it has the capability to compromise sensitive information stored on the phone.

The worm currently can only infect iPod Touch and iPhone devices that are jailbroken.

The worm essentially works by launching the scripts immediately when the phone is started up, it then simply executes the worm at boot-up. Once the worm has been loaded, it sends sensitive data to the hackers by uploading it to a Lithuanian control server. The worm also has the capability to look for passwords in SMS messages via mTAN systems that are primarily used by financial institutions who use the technology to authenticate mobile users for online banking.

What’s even scarier is that the worm assigns a unique primary identifier to all individual handsets, allowing the hackers to target specific users.

The worm spreads over both WiFi and 3G connections. It is affecting users worldwide on many telecoms including T-Mobile and Optus in Australia. Specifically, the worm is targeting users in the Netherlands who bank with ING.

The security firm, F-Secure, that originally found the worm, warns people that the worm can act like a botnet, just like remotely controlling a PC.

There is currently no way for users to remove the worm yet.

Infected devices will experience a constant sharp drain in battery as the worm continues to send data over the connected networks.

If you believe your device is infected, you should immediately re-flash your handset to the latest firmware officially released by Apple.

This is the second worm to hit the iPhone, the first one was harmless as it simply only changed a users wallpaper picture.