The very first worm named Ikee is infecting Jailbroken iPhones targeting only Australia. The worm doesn’t really harm the iPhone itself but adds a wallpaper of the 80’s singer Rick Astley and then seeks out other iPhone’s to infect. It  doesn’t affect most iPhone users; like I said above it only impacts those with Jailbroken iPhones that are running the Unix utility called SSH (Secure Shell) with the iPhone’s default password, “alpine,” still in use.

Here is a screenshot of the wallpaper in question:

Who programed this worm?
The worm was written Wednesday by Ashley Towns, a 21 year-old unemployed programmer from Wollogong, Australia. Apparently, he hadn’t heard of the Dutch guy who did something similar last week. Sunday in an instant-message interview, Ashley said.

“It was supposed to be a small prank  i definitely wasn’t expecting it to get as far as it did. A lot of people especially at first thanked me. I think most people are relieved its not out to destroy their phone. I have had a few people abuse me though.”

The moral of the story [iPhone Security 101]
Don’t panic, you can be proactive and change your default SSH password from “alpine” to whatever you want, also turn OFF SSH if not in use.

Full article here