Apparently, the iPhone 3GS has a security flaw that would allow someone to access the data on a PIN protected device by connecting it to a computer running Ubuntu Lucid Lynx. (There was no mention of the iPhone 3G or the iPad having the problem. And, the original iPhone device didn’t offer encryption at all.)
Obviously, this kind of attack would only work if the hacker had possession of the actual iPhone. But, phones get misplaced all the time. Because of this, if you own an iPhone and you care about the security of the information on the device, you need the ability to reset the device remotely.
For corporations running Microsoft Exchange 2007:
You can initiate a remote wipe using the Exchange Management Console, Outlook Web Access, or the Exchange ActiveSync Mobile Administration Web Tool.
Individual iPhone owners can use MobileMe to “Remote Wipe” their device should it be irretrievably lost. Though, the service costs $99/year, it does include many other services.