In order to enable the new feature, make sure you are running the latest developer beta of the iOS 17.3 build that was released earlier today. To activate it, follow this path: Settings > Face ID & Passcode > Stolen Device Protection. Once enabled, it makes Face ID mandatory for a wide range of sensitive processes, including the ability to reset Apple ID credentials and access passwords stored locally. Doing so ensures that only the phone’s original owner can access the sensitive Apple account credentials by verifying their identity in person using a facial scan or Touch ID verification. Apple essentially seeks to minimize the extensive damage that a bad actor would otherwise inflict with just an iPhone’s passcode and altered Apple ID credentials.
Next, the feature also enables a location-sensitive delay for changing Apple ID credentials. So, if someone wants to change your Apple ID password, they will need to expect it out. In that interval, the victim can pick to track their device using the FindMy network, remotely wipe their iCloud content, and file a lost device insurance claim with Apple. Furthermore, to avoid being pulled into any criminal conspiracy act tied to their iPhone, the theft victim can report the incident to law enforcement authorities and do the same with their cellular carrier partner to disable the mobile SIM functions.