You are on the right track. This is Apple’s recommended way to do this as noted in the iOS Application Programming Guide:
Remove sensitive information from views before moving to the background. When an application transitions to the background, the system takes a snapshot of the application’s main window, which it then presents briefly when transitioning your application back to the foreground. Before returning from your
applicationDidEnterBackground:
method, you should hide or obscure passwords and other sensitive personal information that might be captured as part of the snapshot.