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From the Schneier on Security blog

Researchers have figured how how to intercept and fake an iPhone reboot:

We’ll dissect the iOS system and show how it’s possible to alter a shutdown event, tricking a user that got infected into thinking that the phone has been powered off, but in fact, it’s still running. The “NoReboot” approach simulates a real shutdown. The user cannot feel a difference between a real shutdown and a “fake shutdown.” There is no user-interface or any button feedback until the user turns the phone back “on.”

It’s a complicated hack, but it works.

Uses are obvious...