An issue was discovered in certain Apple products. iOS before 10.3 is affected. The issue involves the "Pasteboard" component. It allows physically proximate attackers to read the pasteboard by leveraging the use of an encryption key derived only from the hardware UID (rather than that UID in addition to the user passcode).
Apple Security Advisory 2017-03-27-4 - iOS 10.3 is now available and addresses code execution, information disclosure, denial of service, and various other vulnerabilities.