Is it true that a crumpled up CVS receipt, tossed in the trash nonchalantly, can lead to identity theft and eventual financial ruin? Michael S. Kraft told readers of the Kraft Law Firm blog to watch what they toss in the trash.
Kraft said, “If the receipt shows your full credit card number and expiration date, this is an invitation for a criminal to go on a shopping spree at your expense.” Federal law attempted to combat this issue in 2006 by amending the Fair Credit Reporting Act 15, which banned businesses from showing more than five digits of a credit card number on a receipt. However, many businesses still fail to comply.
Instead of trashing records, J.D. Roth said that it is wise keep all important tax forms and IRS documents. On his blog, “Get Rich Slowly,” Roth gave direction on what records to keep permanently.
Paul Stephens, an identity theft expert, told the New York Times to lock paper records in a filing cabinet or safety deposit box. Stephens said to keep electronic data on an encrypted U.S.B. flash drive or an external hard drive. Any other unimportant documents should be shredded in an industrial shredder to prevent private information from falling into the wrong hands.
By Catherine Moore, camorous@gmail.com
Sources:
http://www.nytimes.com/2010/03/25/your-money/household-budgeting/25RECORDS.html?ref=your-money
http://www.nytimes.com/2010/04/01/garden/01shred.html
http://www.getrichslowly.org/blog/2006/08/03/which-financial-records-to-keep-and-how-long-to-keep-them/
