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A bug in current version of iOS 7 allows users to disable Find My iPhone without entering a password, which effectively hides it from being located on iCloud.com. says a report in MacRumorsThe security flaw affects iPhones and iPads that are running iOS version 7.0.4.
Deactivating Find My iPhone takes just a few simple steps and it can be easily repeated on devices running the current version of iOS (7.0.4). The exploit involves making a few simple changes to the iCloud account section of the Settings app. 

Video via Bradley Williams

MacRumors has been able to successfully replicate this bug on an iPhone and an iPad running iOS 7.0.4, but could not get it to work on a device running iOS 7.1, so the flaw will likely be fixed with the upcoming update.
The bypass only works on a device that does not have Touch ID or a Passcode enabled, as the exploit requires access to the Settings menu. To avoid having Find My iPhone disabled, users should update their phones with a Passcode and install iOS 7.1 when Apple releases the software.
This is a potentially serious flaw that would allow a stolen iPhone to be removed from the Find My iPhone service. Once removed from Find My iPhone, the former user has no way to track the device. Locating a phone is the first step in finding it.


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