Question about Security - Passcode

[jinxednuance]

Hello,

As I was fiddling around with security, there's an option to wipe data after 10 attempts of unsuccessful attempts to put in the passcode.

Now if that option is set to OFF and someone tried more than 10 times to enter the passcode, what happens?

I would like to know if this option would better help if my iPod got stolen because I would definitely not want them into the phone...

Any suggestions would be appreciated.

Thank you!