Hi, now that we have many folks using the iOS 7, I just wanted to understand how the new "Find my iPhone" feature works. I know in under a normal theft, its very useful. atleast the phone will not be useful to thief any more. But, what happens if I happen to buy a phone from criaglist or some place similar. The seller can later login to iCloud website and report the phone as stolen and I will have no way to use it. Please note; I am not a developer and only following various forums to learn a lot more about iOS 7 from many developers like you ... just curious to know this and so asked as I couldn't get a definitive answer to this till now.
When you buy a phone make sure "Find My iPhone" is not turned on and "Reset All Content and Settings" in front of the person just to make sure it is reset to factory. When Find My Iphone is off, the activation feature is off.
Any time you try to perform a restore or an erase you get a prompt instructing you to turn off Find my iPhone. If you don't then you can't proceed. So assuming that the seller erased their phone before selling it to you there should be no way for them to remotely lock or wipe your new phone.