It turns out that Apple's iPhone 3.1 OS fix of a serious security issue, falsely reporting to Exchange servers that pre-3G S iPhones and iPod Touches had on-device encryption, wasn't the first such policy falsehood that Apple has quietly fixed in an OS upgrade. It fixed a similar lie in its June iPhone OS 3.0 update. Before that update, the iPhone falsely reported its adherence to VPN policies, specifically those that confirm the device is not saving the VPN password (so users are forced to enter it manually). Until the iPhone 3.0 OS update, users could save VPN passwords on their Apple devices, yet the iPhone OS would report to the VPN server that the passwords were not being saved.
The fact of the iPhones' false reporting of their adherence to Exchange and VPN policies has caused some organizations to revoke or suspend plans for iPhone support, said several readers who did not want their names or agencies identified. One reader at a large government agency describes the IT leader there as "being bitten by the change," after taking a risk to support the popular devices. "I guess we will all have to start distrusting Apple," said another reader at a different agency.

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