Anyone ever lost a Passport before?

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I lost my Passport last year and reported it lost...I was contacted saying that they found my Passport, but if I reported it lost or stolen they would be destroying it.  That kind of baffled me and I was curious if this was standard procedure. 

I was trying to travel to Morocco to see some family and wasn't really trying to wait a month to get a new one issued. 
 
Guess it's just a precautionary thing, perhaps identities have been stolen along the way and this is perceived as the best way to avoid it.


Could you not have gotten a new one as soon as you reported it stolen? I would think it'd be like credit cards, it gets cancelled as soon as it's reported lost/stolen.
 
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