Anti-fraud experts are warning that iPods can be used to steal confidential corporate information.

According to the anti-fraud experts iPods could be used by employees to fool security officials and breach data security rules, writes The Guardian.

Association of Certified Fraud Examiners president Paul Carratu noted recent cases involving the iPod. He explained: "Corporates still don't know much about [the iPods] capabilities, but individuals do. In a recent case, after we got a court order, we found the data the employer said was missing on a former employee's iPod."

This is the second such scare. Last July the Ministry of Defence was said to have banned iPods and other large-capacity portable storage devices for the same reason.