Reader: Stolen laptop! How do I protect my identity?

Reader Arash writes: Today my laptop was stolen, along with my TV. I used that computer for online shopping and bank account checking, and I am worried whether my identity can be stolen from the laptop. The people who broke into my house are probably the neighborhood kids, because they only took those two things, not the other electronics in my room. They probably aren't after my identity, but who knows, maybe they'll sell it to someone who is. What precautions should I take to prevent identity theft? I've already changed my email password and my bank passwords.

The most common computer crime isn't virus attacks or hackers breaking into your network. It's laptop theft. And as Arash notes, it offers one-stop shopping for anyone who can smash a window and grab a computer.

I won't rehash advice here on protecting your laptop from theft and the importance of encrypting data. This post assumes it's too late, and the laptop is gone. Preventive measures are a topic for another day.

Acting quickly is key when it comes to preventing identity theft. You're right to have taken the first step already, which is to change every password you can think of. If you have a copy of your bookmarks file (it's a good idea to make a backup), go through and systematically change every login password on the list. It's not just banks and email accounts that will need updates, but also shopping sites (like eBay and Amazon) and social networking sites, too. Remember that a crook won't need your actual password to get into any of these places if you've used "remember me" on the site or have set browser or toolbar auto-fill features to automatically enter passwords for you. One click could be all it takes to order thousands of dollars worth of merchandise on your behalf. It's also a good idea to go through your old credit card statements to make sure you've gotten every website you've done business with in the last six to 12 months.

Your next step should be to cancel and replace your credit cards-at least any you've ever used online. Even if you think you've changed all your passwords, chances are that you've missed one. Getting a new credit card takes minutes and provides pretty much foolproof protection.

After you line up your new cards, add a fraud alert message to your credit report. It can help to protect you if someone tries to open a new account under your name. A fraud alert still lets you open new accounts, but it requires that creditors take extra steps to verify that you are who you say you are. An initial security alert stays on your account for 90 days. You can file an extended alert (for seven years) later if you are victimized. Phone numbers for each credit agency are at the bottom of this post. Note that you may need a current copy of your credit report in order to file the alert. 

Now that things have settled down, file a police report and get a copy of it-this is critical if you're filing an insurance claim. Since your laptop was stolen during a break-in, your local police department is the place to call. The Federal Trade Commission (FTC) handles many computer crimes but probably won't get involved unless you're actually a victim of identity theft. (If you are, visit this site.) Hopefully, if you've followed these instructions, that won't be the case!

Finally, keep an eye on Craigslist and eBay for your laptop. You'd be shocked by how many stolen laptops are unloaded on these sites, often very quickly. If you see a listing that matches your machine (especially if you can verify that it really is yours), alert the authorities and see if they can help you recover it. Good luck.

Credit agency phone numbers:
Experian: 800-493-1058
Equifax: 866-640-2273
TransUnion: 800-916-8800