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If your Kindle gets stolen, and isn't PW-protected, the thief can only buy books, nothing else. If (s)he does so, you get almost immediately notified by amazon by mail (thanks for your purchase...)
After you informed amazon, that you didn't buy the book, and that you Kindle was stolen, you get a refund, and your account gets blocked, even more: amazon is able to do and should delete the books on your Kindle, maybe they even "brick" it, so it's of no use any more.
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