It's a moment that can lead to panic: reaching for your credit card to make a purchase, and realizing that it's gone. Thanks to federal laws and a quick call to the credit card company, losing your plastic doesn't have to cost an arm and a leg.

In this busy world of multi-tasking, cell phones, and social events, it's easy to misplace your credit card. What would you do if you lost yours or feared that it was stolen? Here are some simple dos and don'ts to protect your accounts, and prevent credit card fraud.

Time is of the essence

Don't put off calling your credit card company, hoping it will turn up. While you're waiting, someone could rack up thousands of dollars in debt on your account, depending on your credit limits. The moment that you can't find your card, call the company to report it. Federal law caps your liability at $50 in such an event, but most companies won't charge you if you call within 24 hours of the loss. Follow up that phone call with a letter to the company, verifying the conversation and situation. Make sure that you get the name of the representative you speak to, and note it in your letter.

Fraud can still occur

There are dishonest people who are good at obtaining your credit card information without obtaining the card itself. If you notice questionable charges on your statement, call your credit card company immediately to begin an investigation. In this case, you won't be responsible for any of the fraudulent charges unless you fail to report them more than 60 days from the first billing statement they appeared on. Again, it's a good idea to follow up that phone call with a letter to the company.

Tips for preventing loss and fraud

They may seem like common sense ideas, but often these simple tips for fraud prevention can be overlooked in the busyness of our everyday lives:

• Always know where all your active cards are.
• Keep a list of all your credit and debit card account information in a safe place in your home, and include account numbers, company names, personal identification numbers, and phone numbers to call if lost or stolen.
• Don't carry credit or debit cards with you when you don't need them. When they're not in your wallet, keep them in a secure place.
• Don't write your account number on the outside of an envelope or anyplace where people can view it.
• Don't give your account number to anyone other than a reputable company for a specific purchase. Do not sign blank credit card slips.
• Destroy carbons.
• When you receive new credit cards, cut the outdated cards before throwing them away. Make sure you cut through the account number.

It's not pleasant when you lose your credit card, but thanks to federal laws and prompt action on your part, you can minimize and even prevent any personal loss.