Managing Identity Theft: What to Do If Your Credit Card is Lost or Stolen

When it comes to trying to figure out what to do if your credit card is lost or stolen, many of us have been there. You search frantically for your wallet or purse, and then the phone rings. It's your credit card company calling to inform you that there are some questionable charges to your credit card. As the reality of your situation finally sets in, you swallow the lump in your throat and think to yourself, what do I do now?

There are three things you should do immediately if you find yourself trying to figure out what to do if your credit card is lost or stolen. Even if you just realize you can't find them, don't wait to discover that they've been used before following these steps. This procedure will not only prevent fraudulent purchases from hitting your cards, but they will also protect your identity and your credit overall. The sooner you act, the better.

1) Call every credit card and cancel the stolen card

The very first thing you should do when you realize that your cards are lost is to call every credit card company and report the cards missing. If you haven't saved the phone numbers, locate your latest bill. The toll-free customer service number is listed on every bill. If you can't find a bill, search the Internet for the company website and locate the listed customer support number. Even if you don't have your account number with you, with your name and a few security questions, the customer service representative will be able to assist you quickly.

Make sure to cancel every single credit card that is lost, including (especially) your bank debit cards. Debit cards are funded directly by your bank account, so you want to report those first and protect that cash. Each company that you contact will immediate close the credit card and issue you a new one. When the thief attempts to use your old card, it will be declined.

Alerting all credit card companies of such a potential liability risk as a lost card will save you from the headaches of having to sift through your credit records to determine which charges are fraudulent, and it will save the credit card companies from having to report the lost to their own insurer. The credit card companies want you to call if your card is list - so don't hesitate to do so.

Also be sure to document all contact that you make with credit card companies. This will protect you should any question regarding liability comes up later. Should you need to provide evidence that you promptly reported the loss or theft, you will have a record of the phone call and the name of the person you spoke with. Always ask for names, departments, and phone extensions of anyone you talk to.

2) File an Identity Theft Report to All Three Credit Bureaus

The next important item on your list is to protect yourself from future identity theft. This is especially important if your wallet or purse was stolen with your drivers license, or any other document that might have had your social security number on it. The three credit bureaus to contact include Experian, TransUnion, and Equifax. Contact each credit bureau individually and fill out an identity theft report. This will alert the credit bureaus that any new credit applications or queries should be critically examined for fraudulent activity. Typically you will also receive a free copy of your credit report so that you can make sure it is accurate and there are no fraudulent accounts on your record.

3) Initiate a free 90-day security Fraud Alert

All three credit bureaus usually will charge for a long-term credit monitoring service. However, they also offer a free 90-day Fraud Alert for anyone who has suffered identity theft. This is the best way to protect yourself from misuse of your social security number. This alert will notify any potential credit providers that they need to verify your identity before extending credit in your name. This will require the credit card or loan company to call you first at the number listed with the credit bureau, to confirm that you are really applying for a credit card or loan, before they will process the application.

While this won't protect from someone using your social security number in other ways, it will protect you from the most common things thieves use the numbers for - to obtain new credit cards or loans. Essentially, the 90-day security alert "locks down" your credit so that no one can obtain credit in your name without you knowing about it.

If you are concerned about the long-term implications of someone using your social security information to secure credit in your name beyond three months, you might consider purchasing a long-term Fraud Alert service. This would provide you with additional security and peace of mind.

If you are the victim of identity theft and wondering what to do if your credit card is lost or stolen, following these simple steps will immediately block any additional fraudulent charges to your credit card accounts, and it will prevent the thief from misusing your identity to obtain additional credit. The experience of having your cards stolen is disconcerting enough. Having the peace of mind of knowing that your identity and your credit is protected is well worth the effort.