Spring Cleaning? Include the Prevention of ID Theft

Since tax season is done, I usually clean up files that have been accumulating this past year to make room it seems for more paper! To get a fix on what I needed to keep, I turned to the Better Business Bureau (BBB) for advice.

In the careful handling of personal paperwork, I invested in a crosscut shredder for small to medium sized jobs. It also has a handy slot to thoroughly cut up credit cards. I've learned that you can't do all the shredding at once as you'll burn the motor! If you've procrastinated a long while and have a larger job, please give me a call or send me an email and I'll refer you to a reputable area firm that will either shred at your place of business or home.

Here is an article from the BBB publication "The Connection" that contains handy tips for all sorts of different items...

Spring-Cleaning? Prevent ID Theft by Following BBB Advice on What to Keep and What to Shred

Spring is here and now is a good time to rid the house of paperwork that has accumulated over the past year. Better Business Bureau (BBB) warns that, when it comes to reviewing and cleaning out financial records, failing to shred sensitive documents can put everyone at risk of ID theft.

Last year alone 8.1 million Americans became victims of ID theft resulting in the loss of $45 billion according to a 2008 report from Javelin Strategy and Research. The report notes that, contrary to popular belief, only 12 percent of ID theft is perpetrated online. The vast majority of ID theft occurs when the thief has direct contact with the victim’s personal information such as through a stolen or lost wallet, or by rifling through the victim’s mailbox or trash.

“When people think of ID theft they almost immediately focus on hackers and online security,” said Sharon D'Amico, BBB president. “But the truth is most ID theft happens when people have failed to secure or properly destroy important financial information including paper documents, IDs, and credit cards.”

Properly destroying sensitive personal and financial documents is a key step in ID theft prevention and BBB offers the following guide on when to shred the following documents:

Canceled checks

Canceled checks with no long-term significance for tax or other purposes can be destroyed after one year. However, canceled checks that support tax returns, such as charitable contributions or tax payments, should be held for at least seven years – long enough to cover the six-year tax assessment period. BBB advises that consumers indefinitely keep any canceled checks and related receipts or documents for a home purchase or sale, renovations or other improvements to owned property, and non-deductible contributions to an Individual Retirement Account.

Deposit, ATM, credit card and debit card receipts

Consumers should save credit, debit, and ATM receipts until the transaction appears on their statement and they have verified that the information is accurate.

Credit card and bank account statements

Credit card and bank account statements with no tax or other long-term significance can be discarded after a year; remaining statements should be kept for up to seven years. If a consumer receives a detailed annual statement, they should keep it and shred the corresponding monthly statements.

Credit card contracts and other loan agreements

Credit card contracts and loan agreements should be kept for as long as the account is active in case the consumer has a dispute with their lender over the terms of the contract.

Documentation of a purchase or sale of stocks, bonds and other investments

Investors should retain documentation of a purchase or sale for as long as they own the investment and then seven years beyond that time. Monthly retirement and monthly investment account statements can be shredded annually after being reconciled with the year-end statement.

Paycheck Stubs

Paycheck stubs can be shredded yearly after the income has been reconciled with a W-2 or other tax forms.

Utility or monthly bills

Monthly bills should be shredded the year after being received by the consumer. This way, if it’s a power bill, for example, consumers can compare this month’s bill to last year’s bill for any major changes before shredding it.

Shred-it Checklist - Don’t just toss it, shred it!

• Documents that include Social Security numbers, birthdates, PIN numbers or passwords
• Banking documents and other financial information
• Leases, contracts or letters that include signatures
• Pre-approved credit card applications
• Medical or dental bills
• Travel itineraries
• Used airline tickets

For more trustworthy advice from BBB on preventing ID theft and for guidance on what to do if your identity is stolen, go to www.bbb.org.

As a Realtor with a Seniors Real Estate Specialist designation (SRES), I am especially sensitive to seniors but understand that virtually anyone can become a victim of identity theft. The above contents were used with permission of the Better Business Bureau at 408-278-7400. Tom McEvoy, Realtor is an Accredited Business (member) of the Better Business Bureau.

Thanks for reading!