OK. SOLVED!!! Apple released a new version of ios6. The phone had ios6.0.2 Updated to ios6.1 No more data leakage AT ALL!! Tip: You may need to reset phone back to factory setting not once BUT TWICE. Resetting it one time reset it back to 6.0.2 and then wanted to upgrade to 6.1 - kept leaking data. Resetting it second time. First I updated from 6.0.2 to 6.1. THEN I reset it. It turns out resetting so that it had a clean install of 6.1. instead of a patched 6.0.2 to 6.1 made the difference.