Happened to a friend of mine. He was at Wendy's and it fell out of his brand new Speck case. He didn't realize it was gone until about 10 minutes after he left. After he noticed, he went back to Wendy's with the hope that someone found it and was kind enough to turn it in. Unfortunately, that didn't happen. He borrowed a friends phone and called his iPhone. First few tries, no answer. After a few more tries, they answered the phone. All they could talk about was how cool it was and demanded a reward to return it. He made arrangements to pick it up, but they never showed. They continued to harass him with text messages and voicemails. At this point, he called the police. The police told him that they couldn't do anything because it wasnt officially stolen, it had been found. He then called Apple and they told him they could flag the serial number, but there wasn't much they could do even at that point. He called ATT, similar response. At this point, he decided to deactivate the phone and register his number to his old phone. This would lock down the iPhone for the thief. Although, they could easily activate it again. Now, he has accepted the loss and is moving on. If anyone has any other suggestions, I'd love to hear them, he is pretty devistated.