I'm a little disappointed at Apple. While I think the iPhone is a pretty nice piece of work and their browser is pretty nice too, I don't like the way it handles HTTP-AUTH. (There are other gripes I have, like no "find" feature in safari or the mail app, but we'll stick with a security problem for now). Most browsers are kind enough to display on the "safe" pop-up login box which which website requested the authentication. This is not so with iPhone Safari.
Not only does the pop-up "enter your password" box fill the whole screen (a rather necessary evil), but it doesn't display the domain, URL or any information about the website where you're sending your credentials. If I had some free time, I would hack together a quick demo to show how, using iframes (suitably) or images, I can make you think you're logging into one site but you are actually sending your password to another one entirely. It does indicate whether you are sending your password in the clear or if the connection is secured with TLS/SSL, but in a subtle gray font under the login boxes.
I want to know where my password goes!
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