In October we broke the news that anyone with an iPad 2 Smart Cover (or a magnet) could essentially break into any passcode protected iPad 2. This is how we described it then:

As you can see in our video above, a Smart Cover can essentially unlock an iPad 2. The person who unlocks your iPad 2 will not have complete access to your iPad, but will be able to gain entrance to whatever you locked your iPad 2 on. If your iPad 2 went to sleep in Mail, Safari, Messages, Contacts, or Maps, you can imagine the sorts of personal information that can be viewed on your iPad. If you left your iPad 2 on its Home screen, the person can view which applications you have on your device, control media from the multitasking bar, but not much else.

Now, with the release of iOS 5.0.1 beta, we’ve discovered that one of the new security fixes is a fix for this Smart Cover bug. It appears that Apple has fixed the issue by not allowing the iPad 2 to go to sleep by way of the Smart Cover closing while on the power off menu. ┬áiOS 5.0.1 should make its way onto everyone’s iOS 5 devices in a few weeks.