by Ted Sherman

Created on: November 21, 2008

Two years ago, I lost my wallet when it fell out of a coat pocket that was on the passenger seat of my car. When I opened the car door, grabbed the coat and ran for an appointment, the wallet hit the street and was gone forever. I didn't realize it was missing for several hours, but after frantic searching of the car, I realized I needed to take steps immediately to avoid identity theft.

First, I called my two credit card companies and reported the loss of my wallet. The cards were instantly voided, and I was extremely lucky that no one had tried to use them during my clueless hours when I didn't realize the loss. In addition to replacing my credit cards, it took me several more days to get a new driver's license and Social Security card replacement. Fortunately for me, in the two years since I lost my wallet, there has been no reported illegal uses of any of my lost identity cards.

My advice on credit cards is that before you sign up for one, make sure you know all of your protection coverages from loss and identity theft. Most credit card companies will offer full or partial replacement of any false purchase charges up to a certain amount limit that are recorded on the lost or stolen card. Business people and frequent travelers are the most vulnerable to identy theft. They should be careful about how they use their credit cards in hotels, restaurants, theaters, clubs, stores and other places where identity theft is most likely.

One suggesed protection is that frequent credit card users should take out a separate credit card to use exclusively in some of their travels, dining and entertainment buying. Set a low limit on it, such as $500, and that will protect the cardholder against the most frequent first act of an identify thief or an unscrupulous person who finds the card on the street, a quick, high-dollar purchase. The thief knows that his/her time to use the card before its loss is discovered may be limited to a day or less, so he/she goes immediately to a retail store and buys goods worth as much as thousands of dollars.

The first rule of preventing identity theft when you lose your purse or wallet it to take immediate action. Call your credit card's 800 number first, and then call your bank, state auto license bureau and the Social Security Administration. Give all the information they require, and follow their instuctions in protecting yourself from any financial or other damage the theft could cause.

Learn more about this author, Ted Sherman.
Click here to send this author comments or questions.