Apple FreeLotto message, has my friends account been hacked or worse?

I went to my friend's place to help them with anoher problem when they showed me their iPhone.  It had a message about winning some Apple FreeLotto Promo and to contact a non Apple e-mail address in Romania.  While I'm sure it's a scam, the problem was that it wasn't an SMS or app notification, but a kind of message I've never seen before. 
It was a message with large white text on a grey background with a white rectangular dismiss button with large black writing.  Pressing the home button didn't make the message go away. The message said "Your mobile number has won #990,000 GBP in Apple Freelotto Promo,Ref No:######,to claim send your name,email & mobile to ###########@####.ro" The first # is actually the British pound symbol.  The second lot of ###'s is the reference number, and the third and fourth lot of ###'s were from the e-mail address.  I was able however to take a photo while the message was still there by pressing the home and sleep/wake button.   The only way to dismiss the message was to press the Dismiss button, after which the phone was in the locked state.  Maybe the phone was locked before the message first appeared.  After that I couldn't find any notifications or any such message in SMS, e-mail, the notifications centre, or other appe..
What kind of message is this?  Does this mean that my friend's Apple account has been hacked?  Or could it be worse, e.g. that her iPhone or Apple's servers were hacked?
Just in case, I got my friend to change here apple ID password.
BTW: The phone is an iPhone 4 or 4S running iOS 7.1.1.  She bought it from a phone carrier and is unlikely to hjave ben jailbroken.

You got a Flash SMS. Someone or prankster use a tool.
Read this from Wikipedia:
Flash SMS[edit]
A Flash SMS is a type of SMS that appears directly on the main screen without user interaction and is not automatically stored in the inbox.[63] It can be useful in emergencies, such as a fire alarm or cases of confidentiality, as in delivering one-time passwords.[64]
http://en.wikipedia.org/wiki/SMS#Flash_SMS

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