Basic Security – Everybody should at least do this
Turn on passcode lock and set a 4 digit numeric pin number.
Set it to only prompt for the pin number after 1 hour of inactivity.
Medium Security – For those who like to be extra careful
Turn off simple pascode and opt for a more secure alphanumeric password.
Set it to prompt for the password immediately so every time you pick up the device it prompts you for a password.
Turn restrictions on and go to location services, click find my ipad and make sure “status bar icon is off” so tell tale gps arrow doesnt show if you need to track your iOS device.
High Security – For the über paranoid
As per medium security above for the passcode.
Turn on Erase Data so if somebody tried to use the wrong passcode 10 times it wipes your device.
Turn Restrictions on and go to location section, make sure all the apps you use that need location services are turned on (disable any apps you dont think need to know you location)
Go to system services and disable Setting time zone, location based iAds, Diag and Usage (they just waste battery for now reason). Make sure status bar icon for system services is also OFF.
Make sure find ipad is ON and status bar icon is OFF.
and then select Dont allow changes. this greys out all location services so if your ipad ends up in the wrong hands and they took it from you whilst you were logged in (ie they dont need to get past your passcode). However, a clever thief who’s managed to take your ipad from your hands whilst you were logged would first try and disable location services, once they realise they cant the will then jump to deleting your iCloud or MobileMe account so you can’t use find my ipad, so you’ll want to stop them from being able to do that.
Go to restrictions–>Accounts–>click Don’t Allow Changes and now all the account options are greyed out.
This next step will seem non-sensical but if you want to make sure you can track your iOS device and get it back then make sure Erase data after 10 failed passwords is turned OFF. If it’s turned on and they try 10 passwords your iOS device wipes itself make it like a brand new iPad for them to play with and no way for you to track it.