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"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.”"

schneier.com/blog/archives/202

I guess the only way to fully power off the phone will be to let the battery die

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