A prototype of an upcoming HTC Touch Diamond device, powered by the yet-to-be-released Windows Mobile 6.5, was stolen from a Telstra executive after the company’s CEO Sol Trujillo demoed the phone at the Mobile World Congress in Barcelona. Apparently, the device was loaded with secret product information, sparking Sky News to claim there’s a major security scare going on at Microsoft. We’re not entirely sure if it was a random pick-pocket, but we’re pretty sure it wasn’t these guys.

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