For better security, set a passcode that needs to be entered to unlock iPod touch when you turn it on or wake it. Setting a passcode also turns on data protection, which encrypts your iPod touch data with 256-bit AES encryption. (Some apps may opt out of using data protection.)
Go to Settings set it up again as new.
Go to Settings If you forgot the passcode on your iPod touch, or your iPod touch is disabled.