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Possible Duplicate:
How do I detect that an SDK app is running on a jailbroken phone?

I found out that PayPal's Mobile Payment Library is not supported in jailbroken iPhone - see https://www.x.com/search/site/Mobile%20Payment%20Library%20is%20not%20supported%20in%20jailbroken%20iPhone and Paypal error "DEVELOPER ERROR: FILE SYSTEM CHECK FAILED" in iphone device

What I wonder is what API they use to know that the phone is jailbroken?

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Ronen Morecki
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This is a duplicate of many similar questions.

Most jailbroken iPhones have Cydia and apt, so take a look at this:

http://petersteinberger.com/2010/03/detect-if-an-iphone-is-jailbroken/

Ivan Vučica
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    ...and just like the other answers do point out, you should note that Cydia may not be installed, even though the OS is not jailbroken. A simple read check outside the sandbox will reveal if you are on a possibly compromised iOS. – Till Dec 28 '11 at 18:19