Your credit card bill just arrived in the mail and you notice a $500 charge for a lawnmower from a home improvement store in Illinois. Wait a minute...you don't have a lawn and you certainly don't live in Illinois! It's identity theft. Quick! What do you do next?

Step 1 - 10 minutes

Call the creditor to notify them of the fraud right away. The creditor should reverse the fraudulent charges and lock your account. You should have photocopies of your credit cards and credit contact numbers stored in a safe place just for this kind of emergency. Be sure to record the times, dates and names of the people you contact in a log for future reference.

Step 2 - 10 minutes

Your next step is to contact the credit reporting agencies to report the crime and request that a 90-day fraud alert is placed on your credit report. You only need to contact one of the three bureaus (TransUnion, Equifax or Experian) to have fraud alerts placed on all three of your credit reports.

This 90-day alert will notify creditors that you may be a victim of fraud and advise them to verify your identity before opening any new accounts. This alert also entitles you to a free credit report from each bureau for your review. Fraud resolution experts with the credit reporting agencies can also help you check your credit data for other signs of identity theft and can help you restore your account security. Don't forget to record the results of your contacts in your identity theft log.

Step 3 - 10 minutes

Your last ten minutes should be spent on the Federal Trade Commission's Web site filling out an ID theft affidavit. Once you complete this worksheet, you can use it to report fraud to creditors and can keep it in your records for future reference. If your identity theft goes beyond credit card fraud, you should also contact your local law enforcement agency to file a police report. Add copies of your affidavit and police report to your identity theft log and store these documents in a safe place. How quickly you spot and report identity theft can make all the difference!