What to do if your cell phone is lost or stolen

When the Unthinkable Happens to Your Cell Phone

For many of us, a cell phone is more than just a handy communications device. It's a lifeline—a way for us to connect with family and friends in case of emergency…to secure a tow truck when our car no longer runs…or to contact the police if we find ourselves in danger.

But what can you do if that lifeline is lost or stolen? Are you destined to endure a significant financial loss, a tremendous loss of time, and a sapping of your energy as you try to straighten the entire mess out?

To begin with, it's important to assess your risk. An unsecured cell phone can be a tremendous temptation for a thief. Because a cell phone is highly compact and portable, it can easily be concealed. It can also be to a thief's financial advantage to steal a phone rather than a wallet, since a wallet may not contain any cash while a cell phone can fetch as much as $60 in resale value. Also, chances are good that a cell phone thief will not get caught for the crime.

In order to protect yourself, then, you should avoid placing a cell phone in an outside pocket of your bag or purse. If you choose to wear a cell phone in your belt, it's best if you protect it by enclosing it in a case. Also, no matter how much someone may beg, never give your cell phone to a stranger. If someone needs help, insist on making the call yourself.

If your cell phone is lost, the individual who finds it may use the redial feature to contact you, enabling you to recover your missing phone. However, if you don't want to run the risk of relying on the generosity of a kind stranger, once you find that your cell phone is missing, immediately contact your service provider to find out the call history on your phone. That call history may be the key to finding the thief.

You should also have your service provider suspend your account to prevent expensive calls from being made from your phone. If you do not immediately report that your phone is lost or stolen, you run the risk of being held financially liable for calls made by the individual who has your phone.

It's also a wise idea to invest in insurance that will cover the costs associated with a stolen cell phone. In some cases, this insurance will also allow you to replace the phone at no additional cost. In some cases, your home insurance, renter's insurance, or even car insurance can also be used to cover the expense of replacing your cell phone. Such insurance comes into play if your phone was stolen from your home or vehicle.

Unfortunately, the risk of losing or having your cell phone stolen is quite high—as many as one in four cell phones is found to be missing, damaged, or stolen each year. Fortunately, cell phone insurance often covers your losses, not only if a thief strikes, but also if you misplace your phone or your phone is damaged by Mother Nature or some other culprit.

Even if you think your cell phone has simply been misplaced, you should act as if the phone has been stolen. This is because you never know who might recover your phone. By reporting the loss immediately, you stand a much better chance of recouping your losses and even recovering your phone. If, in fact, your phone is found and returned to you, you'll probably want to reinstate service.

After all, you might have grown quite attached to your lifeline.

Still, your best protection against theft is to be proactive. Never lose sight of your cell phone, even if you are in the midst of deep conversation. You never know when a thief might strike and wreak havoc for you, your phone company, and all those in your address book.