This is the truly scary part of identity theft: You may not know you're a victim until you apply for credit or try to buy a home or rent an apartment, at which time you would find out that your credit rating is shot due to the fraudulent activity of the thief. By this time, the thief may have racked up thousands of dollars in fraudulent charges and/or opened fraudulent accounts in your name.

This is why it's so important to closely monitor activity on all your credit and bank accounts, and to order a free copy of your credit reports every year.

Federal law limits a credit cardholder's liability for fraudulent charges to $50, and most card issuers will even waive that amount. But the cost involved in cleaning up the mess made by an identity theft can exceed this amount many times over.

With regard to theft from your bank accounts due to the loss, theft or skimming of your ATM or debit card, the amount of your liability depends on how quickly you report the card's loss or theft and the discovery of the theft of money from your account. So call your bank immediately to report your card's loss or theft, and also follow up in writing.