You've always paid your bills on time, you've never had a check bounce, and you've never had a problem getting a loan. Suddenly, you start to get calls from a collection agency demanding that you pay for merchandise you never ordered, and your supermarket refuses your checks because you have a history of bouncing them. What happened?

Identity theft is on the rise. Criminals steal credit card numbers, social security numbers, telephone calling card numbers, driver's license numbers and other pertinent forms of identification, and use this information to impersonate their victims. Generally, victims of credit and banking fraud are liable for no more than $50, and in many cases aren't required to pay any of the loss. Even so, victims are left to cope with a bad credit report and must spend months, sometimes years, regaining good credit standing again. There are some things you can do to minimize your losses in case of identity theft.

• When you pay bills, do not leave the envelopes containing your checks at the mailbox for your postal carrier to pick up. Mail your checks at the post office or a Postal Service mailbox.

• Do not toss pre-approved credit card offers, receipts, or tax information into a public trash container without first tearing them into small pieces or shredding them.

• Never give out your credit card number over the telephone unless you have a trusted business relationship with the company and you initiated the call. Watch the mail when expecting a new or reissued credit card. Review statements and phone bills for unauthorized use.

• For PIN numbers, don't use the last four digits of your social security number, your birth date, or anything else that could be easily discovered by thieves. Memorize all your passwords.

• Social security numbers are a primary target of identity thieves. Release it only when absolutely necessary (tax forms, employment records, banking transactions). Do not print it on your checks

If you become the victim of identity theft, report the crime to the police immediately and get a copy of the police report. You may be required to show the report to verify the crime. For more information, you may download the FTC's booklet, "ID Theft: When Bad Things Happen to Your Good Name," at www.consumer.gov/idtheft. 

• Call your credit card issuers and get replacement cards with new account numbers. Follow up in writing.

• Call the three reporting credit bureaus, Equifax, Experian, and TransUnion, to report the theft. Add a written statement to your report stating that your ID has been used fraudulently and to contact you to verify all credit applications.

• Notify your bank and get new account numbers. Put a stop payment on all outstanding checks you are unsure of. If you have an ATM card, get a new card, account number and password.

• Call your telephone and utilities companies and alert them to the possibility that someone may attempt to open new service using your identification.

• You may want to change your driver's license number if someone has been using yours as identification on bad checks.

• Send all correspondence by certified mail, and keep copies of all letters and documents. Provide your police report number to expedite reporting the crime.