Protecting Your Personal Finances: Securing Paper Documents

There has never been more ways to have your personal financial information stolen. In the old days, stealing financial information was a much more personal act. Someone had to steal your wallet or purse, sift through your mail, or rob your home. These acts were much riskier to the criminals involved and often immediately noticeable to the victim. Now, with cybercrime and identity theft possible through a vast variety of channels and criminal networks, you may not even know if your information is being collect, by whom, where, and for what purpose.

It was just ten years ago that we were still using our social security number as our student identification number at college, jotting it on every test and term paper we submitted. A terrifying thought now isn't it? But back then it was commonplace. No one thought twice about it. Now we're told to guard this number like it's the gold in Fort Knox. And the information we once thought harmless, such as the passwords to your email or general information you might find posted upon any professional resume, could be the trickle of information criminals need to open the floodgates to your personal finances.

With your information visible to people worldwide, someone in Kenya, China, Russia, or just across the street could be viewing your most private of financial information by way of phishing scams, spyware, and any number of related internet scams, viruses, and phone scams. And the really terrible thing is that we often don't know about the ways in which our information can be leaked until it's too late, making protecting against such calamities almost impossible.

Now that you're thoroughly terrified, here are some relatively simple things you can do to help protect your personal information.

Mail

As prevalent as cyber crime is these days, the mail can still be a readily available way for thieves to obtain your financial information. From stealing checks to swiping various account statements, your mail can still be a great source of personal information. When you're out of town, even for just several days, consider having your mail stopped through the post office or having a trusted source pick it up for you so that it isn't left out in a vulnerable place.

But even when you are away at work, your mail might be susceptible to theft if it is left in an outside box. Consider using a mail slot in your door or entry area or a locked mailbox to keep sticky fingers from nabbing your private information.

Shred and Burn

The amount of account statements, junk mail, and bills that come through your mail can add up quickly. Shredding these identifying documents is a great way to reduce the chance of something important falling into the hands of criminals, however; shredding isn't always enough. It isn't that difficult for a criminal with plenty of time on his hands to piece back together a straight cut document. Therefore, consider a diamond cut shredder for sensitive documents. I used to use paperwork with important information on it to start our fires with when we had a wood burning fireplace -- a great way to better ensure complete destruction.

Trash Delay

No matter how hard we try to keep our personal and financial information from escaping us, some of it might still make it into our trash can. Information might slip through in junk mail, or in paper work you don't realize has critical information on it when you throw it out.

To help prevent thieves from pilfering your trash while you sleep at night, consider keeping trash containers out of sight in a more secure area such as a garage. Waiting until the morning of trash day to place these containers out for pickup may also diminish the risk of your trash being gone through during the night.

Old Documents

Old documents can be a great find for a home invader. They are often easily identifiable to burglars as many people keep them in those plastic file containers or in office file cabinets and could be one of the most valuable items in your home to identity thieves.

Think about it, old credit card statements, bills, bank statements, mortgage information, tax returns (complete with social security number), retirement account information -- it's all up for grabs, often in a grab n' go file box. Ensuring that old documents that contain full credit card or account numbers, social security numbers and other sensitive data are destroyed or have the number cut or blacked out can help decrease your chances of encountering issues should this information be lost or stolen.

Disclaimer:

The author is not a licensed financial or security professional. The information provided in this article is for informational purposes only and does not constitute legal or financial advice. For financial advice, readers should consult a licensed financial advisor. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.