GSM Hack Demonstrated at Defcon for monitoring calls and sms.

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Defcon: gsm phone hack is revealed - The Inquirer

AN INSECURITY EXPERT has shown the world plus dog how flaws in GSM mobile phone handsets can allow the collection of conversation information.
According to V3, researcher Chris Paget revealed the hack at the Defcon security conference.
Basically the gear he built is a portable mobile phone tower that he knocked up using $1,500 worth of kit. It tricks nearby GSM mobile phones into routing themselves through it and collects data and conversations.
Some phones are less likely to fall for the fake tower. But apparently the Iphone's super secure perfect operating system fell for the fake tower every time.
"Sometimes it was a little difficult to keep the Iphones out of the system," he said. After all who wants to read SMS's from people talking to their mums about what time they will be home for dinner, or listen to a passionate call to another fanboi about the latest Steve Jobs approved App?
Over the course of the presentation, Paget said that the system was able to log some 30 phone calls. He said that GSM is "badly broken" and that the best solution will be to move to 3G networks.