Identity theft has become big business.
A few years ago it was something people talked about as if it could never happen to them, but now most of us know at least one or two people who have been victimized.
Losing a purse or wallet is the most obvious way to become a victim, simply because we all carry so much information with us.
Armed with our driver's licenses, social security numbers, and credit cards, thieves can wreak havoc in a short time.
All they need to do is go on line, order your credit report, and find out if you're a good target.
If you have good credit, you are! Your credit report could show that you have credit cards that are not being used - and that presents a wonderful opportunity.
All the thief has to do is get in touch with the credit card company and register a change of address.
Then he (or she) can report a lost card and order a new one - which will of course be sent to the bogus address.
After the thief has run up the charges on your credit card, or taken advantage of those cash advance checks that credit card companies like to send to people with exceptional credit ratings, he can stop making payments and guess who gets the negative credit report.
You.
Once the new address is established, your thief can also open new accounts.
Car loans, a house full of furniture, new credit cards - you name it.
As long as he continues to pay the new charges, and until he pushes your debt over the acceptable limits, your credit will remain in good standing.
When your score begins to slip and it becomes more difficult to get new credit, your thief will simply stop making payments and move on to his next victim.
Less sophisticated thieves may simply use your credit cards immediately upon stealing them, but since most people report a loss or theft as soon as they know the cards are missing, this is the least of your worries.
If your personal information becomes misplaced, contact the credit bureaus immediately, so they can put a flag on your account.
Also contact your credit card issuers and report the card stolen.
They'll discontinue the numbers and send you new cards.
If your checkbook is gone, your bank can also discontinue your numbers and get you new checks and debit cards.
The most sophisticated thieves will copy your information without physically removing your identifying cards - so that you will be unaware of the theft.
This could happen at a health club, in an employee break room, or anywhere that your purse or wallet is left unattended for any length of time.
This poses the greatest danger, because unless you're monitoring your credit report regularly, you won't know that your identity has been stolen.