As a smart consumer, you should be taking steps on a regular basis to prevent yourself from becoming a victim of identity theft. While you certainly don’t want to be consumed by your fear, it’s important to always be aware of the things you can do to prevent it from happening to you. One of the easiest things that you can do to protect yourself from identity theft is to start shredding all of your financial documents instead of throwing them in the trash.
But let’s go over them one by one. Here is an ordered list of the steps that you can take to protect your identity:
- Protect Your Social Security Number – Your Social Security Number (SSN) is the single most prized possession of any identity thief. Do not carry your Social Security card with you in your wallet or your purse, and if any merchants or local retailers request that you include your SSN# while making payment with a check, refuse to do so. If you must, you can provide the last 4 digits of your SSN# instead. Above all, guard your Social Security Number with your life.
- Safeguard Your Personal Information Over the Phone & Online – Never give out any personal information over the phone or by email to anyone that you are unfamiliar with, even if they sound perfectly legitimate. Never click on any links in any unsolicited emails, even the ones that might look legitimate and never provide your credit card information to a person that calls or emails you first – only give out that information if you’ve initiated the call yourself and you know exactly who it is that you’re dealing with.
- Monitor and Reconcile Your Bank & Credit Card Statements – Save all of your credit card receipts and cross-check them against your statements at the end of the month. Do the same with the check register on your checking account. Make sure that you immediately call your bank or card issuer about any activity on your credit card or bank statements that you don’t recognize as your own.
- Check Your Credit Report – Check your credit report at least once every year, preferably every 6 months, for inaccuracies or credit activity or history that you don’t recognize to be your own. By law and in accordance with the Fair and Accurate Credit Transactions Act (FACT Act), consumers are allowed to request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies through AnnualCreditReport.com.
- Shred ALL of Your Financial Documents & Statements – The rule of thumb is to shred all financial documents (or burn) any document, whatever it might be, if you wouldn’t feel comfortable allowing anyone else to see it. This would include the following items:
- Bank Statements
- Voided, Unusable or Canceled Checks
- Unsolicited Credit Card Offers
- Credit Card Statements
- Old Brokerage Account, 401K, IRA and other Financial Statements
- Income Tax Statements and Records
- Insurance Coverage Documentation and Statements
- Legal Documents
- Medical Records
- Personal Bills
Buying an affordable shredder for home use is highly recommended, and measured against the cost of trying to repair a stolen identity, it’s well worth the investment. The two types of shredders are the basic strip shredder and the cross cut shredder. A cost cut shredder will cut the paper in two different directions, which provides better security than a basic strip shredder, but will also require more maintenance and can handle fewer sheets at a time. I recommend using a cross cut shredder, if at all possible.
While shredders come with a wide variety of features and prices, generally speaking, you can find an adequate shredder for home use for under $50. Depending on the range that you can afford, I recommend the following two shredders for home use:
- Staples MailMate Cross – Cut Paper Shredder – the MailMate cross cut shredder is a very affordable high quality shredder that contains some features of far more expensive shredders. The MailMate will shred Cd’s/DVDs, credit cards, staples, small paper clips & unopened mail. It handles 12 full sheets at a time and up to 100 uses/day. Priced at $79.99, it’s well worth the price.
- Dynex Cross Cut Paper Shredder – the Dynex shredder is a much more affordable cross cut shredder than the MailMate and is what I would consider a mid-level quality shredder. The Dynex will also shred credit cards, staples and small paper clips but has a much lighter capacity load than the MailMate of only 5 full sheets at a time. The key for the Dynex is it’s affordability. At $34.99, it’s much better suited for budget conscious consumers who want a decent shredder that can still get the job done.
So whatever your choice is, safeguard your identity with the steps that I’ve outlined above and go invest in an affordable shredder. After all, I consider a shredder to be a must-have appliance for every household these days.
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This advice is really going to help, thanks.