If you’re a black market arms smuggler entering all your transactions on your iPhone we have bad news for you. The iPhone is spying on you. It’s true. Jonathan Zdziarski demonstrated how, with the use of a custom firmware bundle, it is possible to crack the iPhone and recover screenhots that the iPhone takes of the users most recent action.

As you might imagine these screenshots can be quite compromising. The iPhone might cache passwords, map locations, the amount you’re getting for a crate of AK 47s etc.. But the screenshots are crucial to get that cool fade away effect when the home button is depressed. With the use of forensics these are recoverable. So be careful with the last thing you do before you hit the home button.
Source: cnet