Posted originally by a Dutch Hacker who released this virus into the wild but later had a change of heart after his paypal was shutdown and the hack was widely discussed. The url shortener service which was directing to the fix (doiop.com/iHacked) was shutdown so please spread this fix to anyone affected. Originally posted at http://mr09.fileave.com/
“1. Get an SSH program like putty for windows.
2. SSH to your iPhone. (If you haven’t done that before it may take a while, and after that there might come a warning about a key fingerprint. You can just accept that). Login using username "root" and password "alpine". (this is the default password)
3. There’s a few commands you have to execute, best is to just copy them:
chown mobile /private/var/mobile/Library/LockBackground.jpg
chmod 666 /private/var/mobile/Library/LockBackground.jpg
mv /private/var/mobile/Documents/LockBackground.backup.jpg /private/var/mobile/Library/LockBackground.jpg
4. That’s everything to remove my stuff. Now there’s one command left to make sure this won’t happen again! Again in putty or any ssh client type: "passwd". You’ll then be asked for a new password, you can change this into anything you want. The safer the better of course (:
The reason you have to change this password is that it’s default is alpine at ALL iPhones. So if anyone knows that (and all hackers do) they can access your iPhone. Now you’ve changed it this isn’t possible anymore!
If you have any questions or something, mail me and I’ll try to answer them!