Despite marketing that its App store was safe from malware, Apple has been found to be distributing it.
The app is called 'Find and Call' which which steals your phonebook details and sends spam SMS messages to all your contacts, claiming to be from you.
The release of information poured cold water on the iPhone's fifth birthday celebrations. Apple had been claiming that it had prevented malware appearing thanks to its walled-garden approach.
However it turns out that this is a falsity and it comes in the same week where Jobs' Mob finally had to admit that its iOS suffered from viruses too.
The app description said that Find and Call is a new technology for your mobile phone which allows you to "make calls from your mobile phone" but search for subscribers you need.
Quite why anyone would want it is anyone's guess, although it does promise free calls to domains, email, Skype, social networks without needing dialing.
Once installed users are asked to register within the app using your emails address and mobile phone number.
If the users then asks to 'Find Friends in the phonebook', all the data will be secretly sent to a remote server.
Kaspersky Lab expert Denis Maslennikov said that once you've signed in, it will ask you for your social network details and email address, which will also be used maliciously it seems, and even your Paypal details.