What steps I should take for data security and prevent misuse of my lost iPhone?
Call your phone carrier and disable your sim card and report the phone stolen to the police. If law enforcement finds evidence that the phone SIM, serial number or IMEI were involved in illegal activity, a dated police report is something they may consider when investigating a crime. Of course, a bad person could report a phone stolen and still use it for crime, so you can't really get the carrier or Apple to erase their records but just do what you can if you lose a possession.

You won't be able to use "Find My Phone" as you've erased all the data on the phone. So yes, you might get tracked down if there are records that you once owned or operated that phone.