It had to happen at some point. After all, Apple can never go for long without some controversy. The latest issue is the big security hole in the iPad 3G that was exploited a few days ago.

The flaw in the iPad, nicknamed ‘iLeak’, was exploited by a web security group that exploited weaknesses in the AT&T network. The group was able to access over 100,000 iPads which were on AT&T’s 3G network. The information that was extracted was the user’s email address and the ICC-ID which authenticates the user and grants access to the network. Doesn’t sound like a big deal? Think spam, think lots of spam. Now think about the early birds who jumped at the thought of getting an iPad 3G and not an iPad Wi-Fi. People like Diane Sawyer of ABC News, Janet Robinson – CEO of New York Times and Rahm Emanuel, and yes, the guy who just happens to be the White House Chief of Staff.

The incident is embarrassing to both AT&T as well as Apple. Both have a lot to lose from it and in that aspect, AT&T has quickly plugged up their side of the hole. So far there has been no comment from Apple and no news on whether they are releasing an update to the OS.

The iPad 3G was released on the overwhelming success of the iPad Wi-Fi. This issue could definitely impact the sales of any future iPad3Gs. It also doesn’t do much for the reputation of AT&T which is already berated for its poor connectivity issues.