A number of online news websites are reporting that the iOS 4.1 software contains an easily replicable security vulnerability that allows anyone to make a phone call through a combination of keys.
A MacForums member says that if someone taps the Emergency Call button, then enters a non emergency number such as 000, then taps the call button and immediately hit the lock button, it will open the Phone app which allows you to see all the contacts on the phone.
Surely enough, we tried it on the iPhone 4 (it should work on the 3G and 3GS) and it did work; the problem though was that it didn't allow you to exit the phone app and you have to switch off your phone and restart it again.
Some however have pointed out that this is a known feature that allows emergency workers from calling contacts for a person when injured.
There are reports though that the glitch can no longer be reproduced on iOS 4.2 Beta which means that Apple may already be aware of the bug.