IPhone can connect to Exchange Server with incorrect password!

I have changed my Active Directory password, but have not entered the new password into the Exchange account settings on my iPhone. Nevertheless, my iPhone can still connect and get mail from Exchange. Thinking that perhaps it was because the iPhone was still working with a connection that had been established before I changed my password, I turned it off and turned it back on again -- and it connected and got new mail!

Don't blame the phone just yet.
The server is where the problem is..... The Exchange Server/IIS front end is the gatekeeper to your email. If the password is sent wrong, the server will reject you. Conversely, if your Exchange server is not authenticating at all, it will let anyone in.
What is probably happening is that your password has not synchronized from AD to Exchange. This is not unheard of, but if it persists you should let your Sys Admin know.
My guess is that you can log into your OWA (Web mail) with your old password as well.

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