stolen macbook air

Had my Macbook Air stolen. Find My has located it in Hidalgo Mexico. I have since locked it.

A password was set to enter as well as fingerprint. Reading so many threads tell me its easy to break into laptop though thieves shouldnt figure out the password.

I want to call this a loss, not worth making a trip, going to Mexican authorities either.

What should I do next to protect myself?

Do I erase? Change icloud password?

What does erase do?

Thanks in advance