Originally Posted by Connallmac
Amazon has stated that they will not hold a Kindle owner responsible for purchases made on a lost or stolen Kindle. It's also a very simple matter to de-register a Kindle from your Amazon account.Right near the top of your "Manage Your Kindle" page, it lists all of the Kindle devices registered to your account with the device's name, it's e-mail address, it's warranty number(if any), a hotlink to edit the device's info, and then a hot link to deregister it. A follow up call to Kindle support should then take care of any unauthorized purchases. I de-registered my Kindle 2 when I sold it to my father-in-law after upgrading to the DX and it was just as easy as following that hot link.
Some sort of way to keep children out of files you don't want them to have access to is another story. I don't see any way to do that with the way it's set up now.
Yeah, I know that deregistering is pretty easy, but if you could use an optional password to protect your Kindle from unauthorized viewers/your kids, and also protect it if it is lost or stolen then you are killing two birds with one stone. Especially if Amazon can turn on a page that provides instructions for how to return a lost Kindle to its owner.