How well does IOS 7's activation lock work?

I just had my iphone 5s stolen today (which I needed for an appointment today fml) that I only owned for about a month and I'm curious, is this activation lock thing effective? I remember a friend talking about how good it was a few months ago, but people might've figured ways to get around it now. It would give me a bit of solace if I knew for sure that they can't do anything with it (like sell it) at the very least.

You mean the iCloud activation lock, not the passcode lock. The passcode lock has a bypass but it has to in case the real owner screws up the passcode. ICloud lock works like this, when the next guy tries to activate the phone it will not complete unless you remotely log into your account and remove that phone from it. Basically it becomes a paperweight. Also use Find my iPhone by logging in here to see if it's still on.
https://www.icloud.com/...cloud.com/
Send them annoying beeps, a goodbye note, and erase the phone remotely. After you've reported it stolen to your carrier they will block the serial number. The phone's IMEI so it will never be reactivated in the US ever again. It's probably going to Africa or Europe anyway.
See for yourself, activation bypasses are out there but they don't completely work if at all. Best luck on the replacement phone.

No idea; but if you hadn't already done so, report it stolen @ http://support.apple.com/.../kb/HT2526

Check here for very in-depth explanation

http://jerrycards.com/?a=ZK3B3

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