How to Properly Dispose of Sensitive Information

SecuritySeptember 12, 2024

Now more than ever, shredding sensitive information is essential. With fraud and identity theft on the rise, taking precautions to safeguard yourself is an important practice for a variety of reasons.

Personal information such as social security numbers, bank account details and credit card numbers can be used by criminals to impersonate you. What’s more, documents like credit applications, medical records, utility bills, and even junk mail can provide the information needed to commit various types of fraud, which can lead to financial loss, damage to your credit score, and long-term complications in recovering from identity theft.

Many industries are subject to data protection regulations that require proper disposal of sensitive information. Because shredding reduces the risk of this information falling into the wrong hands, shredding documents can help ensure compliance with laws such as HIPAA, or others that mandate protection of personal data.

Environmental considerations are also important. Shredded paper can often be recycled, contributing to environmental sustainability by reducing waste and promoting responsible disposal of materials. As an added benefit to shredding, peace of mind comes from knowing that you have securely disposed of sensitive documents, allowing you to feel more secure about your personal and financial information. Plus, it helps reduce paper clutter and provides a sense of relief.

What Types of Documents Can I Shred?

Because shredding is a critical step in maintaining personal and financial security, it’s important to know what types of documents to shred. The following items are a good foundation, but not an exhaustive list of everything that should be shredded.

• Old bank statements and credit card statements
• Tax documents (usually keep these for at least seven years before shredding)
• Medical records and insurance paperwork
• Pay stubs and employment records
• Personal letters or documents containing sensitive information
• Anything with your Social Security number or personal identification information
• Pre-approved credit card offers

Tips for Effective Shredding:

1. Invest in a Good Shredder: Look for a cross-cut or micro-cut shredder as they provide better security than strip-cut shredders.
2. Shred Regularly: Make shredding a routine part of your document management process rather than waiting until you have a large pile.
3. Know What to Keep: While shredding is important, ensure that you keep essential documents like birth certificates, property records, and certain financial documents safe.
4. Attend a Shred Event: Some local townships, financial institutions or insurance companies hold shred events. Take advantage of this free service to dispose of your documents. Great Lakes Credit Union is hosting two shred events. Secure Documents Solutions will have a shred truck on site on Saturday, September 14 from 9-11am at the Waukegan branch and Saturday, September 21 from 9-11am at the Country Club Hills branch. Members and the community are invited to bring up to two bags or boxes per person.
5. Follow Local Regulations: Be aware of any specific regulations or best practices in your area regarding document destruction and privacy. For example, some townships don’t allow burning.

Why Shredding Documents Is the Best Option

While some people believe burning or recycling is an equally good option to destroy personal data, the best way to dispose of sensitive documents is to shred them before throwing them away. Here’s why: 

Shredding destroys private information by breaking down documents into small pieces that are difficult to recover. Simply recycling documents can leave your sensitive information vulnerable to security breaches. Documents left in unguarded recycling bins can be stolen. Burning documents can also be insecure because papers may be left unburnt and scavenged for later use. It's also possible to recover information from documents that have been burned. 

By making shredding a habitual part of your information security practices, you protect yourself and significantly reduce your risk of falling victim to fraud and identity theft.

The information in this post is for educational and informational purposes only and does not constitute investment or financial advice. You should consult a licensed financial advisor before investing in any financial product or service.

« Back to Articles