Time is on the side of identity thieves if you're not being proactive to protect yourself.  The faster you act to cut off unauthorized access to your credit information, the less damage you will suffer. Here are some tips on how to do this.

Fast Action: Your Key to Minimizing Damage of Identity Theft

By Jonathan Ginsberg

Identity theft is a growing problem and one that affects consumers at every income range.  After all, you can buy merchandise online with only a numbers and a mailing address.  Plastic credit cards are only starting to incorporate photo ID or biometric identification.  Until the credit and banking industries make radical changes in credit card processing, thieves all over the world will continue to exploit the inefficiencies of the credit processing system to steal money.

Recently, I was hired by a local physician whose identity was stolen by a thief in another State.  We are not sure exactly how the thief obtained my client's social security number, but the end result to my client was numerous bogus credit card accounts and even a fraudulent checking account.  The scam came to light when an attentive clerk at a jewelry store demanded a photo ID and the thief fled the store.

What I found interesting about this case as well as several others was that the theft did not come to light for several months - which was plenty of time for the criminal to make a mess of my client's credit file.

I think, therefore, that the speed at which you react to identity theft can have a tremendous impact on the damage it causes.  The faster you move to cancel exposed accounts and to notify the credit bureaus of the identity theft, the less likely you will end up in a multiyear battle to restore your credit.

Here are a number of suggestions about how you might prepare yourself to react quickly if and when you learn that you have been a victim of identity theft:

1) request your credit reports regularly and review what you see - you should review your credit file at least twice a year, if not more often.  Several of the credit reporting agencies have "credit protection" services that promise to monitor your credit file for unusual activity.  If you can afford this protection, it might make sense.

2) keep a list of all of your credit cards, including the names, addresses and phone numbers of the issuers.  If you need to cancel your cards quickly, this list will prove invaluable.

3) if you have credit cards that you do not use, but you have kept the accounts open to help build your credit score, keep those cards in one place - preferably in a safe or safe deposit box.  Keep a recent copy of your credit reports with these cards as well

4) make a list of all items contained in your wallet.  I have seen some people photocopy all of the cards in their wallet so you will know where you might have a problem if your wallet is lost or stolen.  This type of information should not be keep in your kitchen drawer.

Finally, if you become a victim of identity theft, make every effort to find out where the thief is operating.  For example, in the case of my physician client, the thief's activity occurred in a suburb of Dallas, Texas.  We contacted the Dallas police department and filed a police report and we included that police report in all written notices to affected creditors.  You can also use your knowledge about the thief's location to contact banks and credit unions in that area to advise them of the identity theft and to warn them not to open any new accounts in your name.

Identity thieves use the delays in the credit processing system to their advantage.  Anything you can do to reduce the amount of time available to the thief, the better your chances at reducing harm to your credit.

Jonathan Ginsberg is a practicing bankruptcy, workers compensation and Social Security disability lawyer in Atlanta, Georgia. He is the editor and publisher of a Social Security disability blog and the Georgia Workers Compensation blog.