Virus infested ‘Recertified’ iPhones
Ouch… news.com has reported on that a customer bought a refurbished iPod Touch through Buy.com for $99 and it was infected/infested with a trojan that quietly installs a backdoor on your Windows system.

He contacted Buy.com and they quickly sent him a brand new one, then Buy.com contacted the factory where it had been recertified. They concluded that it was “not a significant problem that is happening with any frequency at all.” Nor is the issue limited to iPods. Best Buy had an issue earlier this year where it was forced to warn customers that some of its Insignia photo frames shipped with a virus.
Via Crunch Gear
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FYI it was a $99 recertified 4gb ipod nano not an iPhone.