I think you’re referring to Stolen Device Protection.
Stolen Device Protection is a feature introduced in iOS 17.3 as access to the passcode of a stolen device allows:
- changing the Apple ID password
- sign out of other devices
- adding/changing a recovery key (which is the only way to reset the password without a signed-in device or a recovery contact, which can also be removed with the device passcode)
- accessing passwords in iCloud Keychain
- turning off Find My
- using Apple Pay
- applying for an Apple Card, if the device has a photo of a Social Security card
- sending money using Apple Cash
- anything else that requires the passcode or Apple ID password
Stolen Device Protection requires Face ID or Touch ID for the actions, disabling the passcode fallback. Additionally, a one-hour security delay is enforced for changes to Apple ID security settings. You can choose to only enforce the security delay at unfamiliar locations, or always enable it.
The device automatically recognizes a location as “familiar” once you have been there for enough time. Familiar locations currently cannot be controlled. If this concerns you, you should choose to always enforce the security delay.
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