Someone stole my verizon iphone 4

Someone stole my verizon iphone 4, I have not yet called verizon to suspend my service. Is the person who has my phone able to use the phone if they restore it or bypass the lock screen? Will the be able to remove my service from the phone themselves, lets say if they wanna use MINE to activate their account?!

Added (1). The reason why i don't want to suspend the line is bc if i do that, the Find my Iphone app won't work bc it will cut the data off and I would like to possibly recover it by tracking it, but the person must turn the phone on. I'm not getting any tracking of it bc they have it off.

Yes, they can use the phone, as long as you haven't reported it to Verizon

when you report it to verizon it will be blacklisted and not useable as a phone, but it can still be used as an iPod touch.

Yes. So do this. Go to icloud.com on any computer and sign in with your apple ID info. Then click find my iPhone and see where your iPhone is located using GPS. If the thief has not taken your sim card out, you can see where your phone is. Then you can get it back or you can put a password or delete EVERYTHING on the iPhone. If you delete everything, you will not be able to see where your iPhone is located anymore. So first look at where the phone is. Then if it is not available for the next day or so, disable your phone.

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