Maybe I am just missing something very obvious but it seems like there is no option to wipe the phone after misentering the password multiple times (BB or iphone style)?
I know it can be done with Exchange policies but it will be a cold day in hell before I go THAT route...
It's not a standard option in Android (I for one am glad - I've accidentally wiped my work Blackberry more than once when inebriated). Android Device Manager (or the Motorola equivalent) both allow a manual remote wipe from a PC or another Android Device.
It's possible for apps to monitor incorrect password entries (no root required just a Device Administrator Permission), although I'm not sure if an automated wipe is possible without root. Take a look around the play store to see if anything meets your needs.
I use the automation app MacroDroid along with Secure Settings (both in the playstore) on my unrooted MotoG. The way I've got it set up is that 3 failures to enter correct PIN changes it to Password mode, a further 3 failures will prevent the phone from waking up (by automating a screen lock associated with the screen coming on). As-well as that it will automatically take and email to me front and rear camera photos, and the phones location on the change from Pin to Password, and again on the change to 'Lockdown' mode. I can send it an SMS with a special message in the text to get it to repeat this. I'm toying with the idea of setting it to shout 'Thief!' repeatedly at full volume when someone tries to turn on the screen when it's locked down
