wow! lucky you kid! well theres this thing that's both on an ipod touch and Iphone that if you get the passcode wrong after 10 times. it will erase the hold data. now that only works if the person who lost the iphone checked it off. if they didn't you could try restoring to factory settings. You don't have to jailbreak it or anything. Just download Itunes on your computer, you need to have an apple cable 2.0, now plug it in. it might say that it can't open it because you need to unlock it first so what you need to do keep the iphone plugged in. hold the home and power button for atleast 10 seconds, once the iphone turns off release the power button and keep on holding the home button for atleast 10 seconds until you get to DFU mode. DFU mode is the little picture of an Itunes logo with a cable. your Itunes will recognize the Iphone and click on restore to factory settings and make sure to restore it to new. and that's it!
here is also how to put it on dfu mode:
1. Connect your iPod touch/iPhone to your computer with the USB cable. (make sure iPod/iPhone is on)
2. Hold both power and home buttons at the same time and count to 10 (1 onethousand 2 onethousand etc. )
3. Let go of the Power button, continue to hold the home button until the iPod/iPhone connects back to iTunes.
Be patient it can take some time. Sometimes while holding the home button it can take up to 15-20 seconds.
Ipod touch and Iphone expert and hacker!