An anonymous reader writes "In a Wired news article, iPhone Forensics expert Jonathan Zdziarski explains how the much-touted hardware encryption of the iPhone 3Gs is but a farce, and demonstrates how both the passcode and backup encryption can be bypassed in about two minutes. Zdziarski also goes on to say that all data on the iPhone — including deleted data — is automatically decrypted by the iPhone when it's copied, allowing hackers and law enforcement agencies alike access the device's raw disk as if no encryption were present. A second demonstration features the recovery of the iPhone's entire disk while the device is still passcode-locked. According to a similar article in Ars Technica, Zdziarski describes the iPhone's hardware encryption by saying it's 'like putting privacy glass on half your shower door.' With the iPhone being sold into 20% of Fortune-100s and into the military, just how worried should we be with such shoddy security?"