What to do when you lose your wallet -- Page 2

The FTC recommends you first call its hotline (877-IDTHEFT or 438-4338), followed by a call to the Social Security Administration at 800-772-1213.

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File a police report
This step, too, requires a trip to your local precinct. But filing an official report adds validity to your story. "It tells the world, 'I really did lose the card; I'm not just having buyer's remorse over a $900 purchase,'" Williams explains. Definitely save a copy of the report as proof should odd purchases begin cropping up in your account.

If you last saw your pocketbook in a public place, be succinctly specific with the details: "I walked into the President's Hall meeting room at the Wyndham Hotel, dropped my purse in a chair and headed for the podium. There were 14 people in the room. When I returned approximately seven minutes later, my purse had disappeared."

Dial the credit bureaus
Finally, a break: Pick any of the three credit reporting agencies and it will share the information with the other two and add a "security alert" to your file, says Maxine Sweet, vice president of public affairs at Experian.

This alert is a temporary statement that advises any company accessing your report to please verify your identification before granting credit because you may be a victim of fraud. After you receive your reports you can determine if there has been any fraudulent activity and decide if you need to add a "permanent" alert.

To do so, you must provide proof of your address and proof of your phone number such as a copy of your phone bill. That statement does not block access, but provides a phone number for the company to contact you to verify your identity before granting credit.

The temporary alert period varies by credit reporting agency; Experian's remains for 90 days. The permanent alert remains for seven years on all the reports. To remove that alert, you must send the request in writing with proof of your identity.

Tell your local bank
According to the FTC, no federal law limits your losses should someone obtain your checks and forge your signature. State laws usually hold the bank responsible in this case, but the Catch-22 comes when they also require you to "take reasonable care" of your account. Stay in the law's good graces by closing your current checking account and reopening a new one. The bank will notify its internal processors about the now defunct account, but the FTC recommends you also get on the horn and call these check verification services to stop someone from using one of your checks at a merchant's cash register:

Don't sweat the small stuff
Thieves are wising up -- if your wallet has fallen into the wrong hands, the criminals' latest trick is to spend the cash and save the department store-issued credit cards, Williams says. Four days later, they test the shopping waters to see what you've forgotten to close. So don't put off contacting Home Depot and Target to cancel those cards -- even if the VISAs and MasterCards register no illicit use.

Although crooks could use your Blockbuster ID, union membership certificate or library card to build the illusion needed to establish bogus credit down the line, Williams doubts these cards represent immediate financial loss. "The bad guys won't stop by Kroger and say, 'Let's buy a six-pack of beer and use the amenity card to get 12 cents off,'" she points out. Replace these at your convenience.

If you do discover later the dog hid your wallet in the closet, just move forward with the new credit card numbers. However, conduct a proper burial for your old accounts, Schettino warns: Shred the magnetic strip, lest criminals re-encode it with skimmed information.