Stacks of old bills, credit offers, and bank statements may seem harmless, but they can make you a prime target for identity theft. According to the Federal Trade Commission, consumers lost more than $12.5 billion to fraud in 2024, with over 1.1 million reports of identity theft. Many of these crimes start with a single piece of paper tossed in the trash.
The truth is, financial documents often contain the very details thieves need—your address, account numbers, insurance policy IDs, even your Social Security number. The safest way to protect yourself is simple: shred what you don’t need.
Documents You Should Always Shred
- Tax returns: Keep for seven years, then shred.
- Bank statements: Hold for up to three years; shred anything older.
- Credit card statements: Keep for a year (longer if used for taxes).
- Credit card offers: Shred immediately—thieves can use them to open accounts in your name.
- Investment statements: Store for at least a year; some may be needed for tax purposes.
- Pay stubs: Keep for a year, then shred.
- Insurance documents: Retain while the policy is active; shred when expired.
- Utility bills: Keep only if needed for taxes or business records, then shred.
Protecting Your Information
Until it’s time to shred, store important papers securely in a locked cabinet, fireproof safe, or bank deposit box. For shredding, a cross-cut shredder at home works for small jobs, while larger stacks may require professional services offered by UPS, Staples, or community shredding events.
Finally, take extra steps like freezing your credit to block fraudsters from opening accounts in your name. Shredding may feel tedious, but it’s one of the simplest ways to safeguard your privacy—and your financial future.