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Uh, no. Of course it's doesn't prevent theft. (Though the new 'wipe the phone in 10 tries' thing may deter it, separate from TouchID, I'm not sure.)

The point is that with TouchID (as opposed to no passcode) the thief will not be able to send porn to my mom or read my text messages before they wipe the phone.

And with iOS7 they're going to have a harder time wiping it because phones are now locked to your Apple account. So they need your Apple account ID and password to wipe it.

I wonder how much targeted attacks to recover that go for on the black market? Would the phone thief still make a profit?

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