Another day, another Apple problem it seems. Today we have the problem that involves the iPad 2 and its Smart Cover, where it will allow you to circumvent the passcode and access the last open app on the iPad 2. The hack requires iOS 5, an iPad 2 Smart Cover and a few steps to do so.
In order to hax0r the iPad 2, you'll have to install the Smart Cover on your locked iPad 2 then open the cover. From there, you'll see the passcode screen. Tap Cancel then hold down the power button on top of the iPad 2 for a few seconds to activate the 'power down' slider. But instead of powering down, close the smart cover, wait for a second then open the cover again.
Press cancel to close the power down slider and you will be put back into the last application you were running. If you were put into the Home Screen, you can't actually access any apps, but you can playback media. Where the real risk is, is if you were in Messages or Mail... some seriously sensitive data can be accessed and it doesn't even require a hardware hack.
The flaw only seems to affect iOS 5, with TechSpot testing it on their iPad 2 running iOS 4.3 and they were unable to replicate the hack. But, they did upgrade to iOS 5 and found the above issue was definitely there.
There is however, a temporary fix: disable "Smart Cover unlocking" in the iPad 2 settings menu under the General tab.