>> 7.5.5 After the action taken under Article 7.5.1, 7.5.2, 7.5.3 or 7.5.4 for the first completed illegal move by a player, the arbiter shall give two minutes extra time to his/her opponent; for the second completed illegal move by the same player the arbiter shall declare the game lost by this player. However, the game is drawn if the position is such that the opponent cannot checkmate the player’s king by any possible series of legal moves.

I stand corrected.

I’ve never actually played competitive chess, I’ve just heard this from people who do. And I thought I remembered once in the Icelandic championships where a player touched one piece but moved the other, and subsequently made to forfeit the game.