Stolen Wallet: Why it Might Be Worse Than You Think

There used to be a great sense of relief when a stolen wallet was returned to its rightful owner without any credit cards missing. But these days, an act like that doesn’t necessarily mean that the wallet owner hasn’t been a victim of a more serious kind of theft—identity theft.

Certain rings of identity thieves specialize in stealing wallets, duplicating cards (or at least duplicating the information contained in the magnetic strip on the back) and then returning the wallet as if nothing is missing. The owner of the wallet then rejoices over his or her “good fortune” while identity thieves begin spending elaborately in that person’s name. If they were able to gain access to the wallet owner’s social security number through the theft, then existing accounts might not be the only ones affected. Some thieves take things a step further and begin opening fraudulent new accounts in someone else’s name.

So, what do you do if your wallet’s been stolen?

5 Things You MUST Do if Your Wallet’s Been Stolen (Even if it Was Returned)

1. File a police report. As soon as your wallet is stolen file a police report with the local police. While you are there ask for the name and contact information of the officer handling your case. That way, if your wallet is returned you can call that officer and update him or her on the status of your situation. But make sure you inform him or her that you aren't sure if your identity has been compromised or not. Many local police departments are inexperienced with identity theft cases, and if you feel you aren't getting the attention you deserve (once you have determined that you have become a victim of identity theft) you may want to contact the FBI or Secret Service regarding your particular case.

2. Contact your bank and credit card companies. As soon as you realize that someone else may have access to your wallet, you should contact your bank and credit card companies immediately to let them know your account information has been compromised. You can ask them to freeze all existing funds in your account and begin the process of closing your existing accounts and opening new ones. Log online and check your recent statements to see if any unauthorized activity has taken place, if so report it as theft. Make sure you tell them that you are also a potential victim of identity theft and they should take extra measures of security when someone contacts them saying that they are you.

3. Call one of the three major credit bureaus and ask them to contact the other two agencies on your behalf and issue a nationwide “fraud alert” that will prevent thieves from opening any new accounts in your name. You can also ask if anyone has inquired about opening credit in your name in the last 24 hours or so.

4. Go to the local DMV and explain that your wallet was stolen and someone may now be using your license fraudulently. Ask them to flag your license or to consider issuing you a new license number entirely.

5. After a few weeks pass make sure you request a free copy of your credit report from www.annualcreditreport.com so you can make sure that all of the other measures of protection you took paid off. By viewing your credit report you will be able to tell if anyone has fraudulently used your credit cards or opened new ones in your name.

These may seem like extreme actions to take in response to a stolen wallet, especially if it seemed to be returned in the same condition you left it in. But identity theft is a multi-billion dollar crime that affects between 9 and 10 million Americans a year. Identity thieves are masters at committing fraud without making it seem like anything out of the ordinary is happening. The faster you act, the better your chances are at coming out of your stolen wallet experience unscathed.