Spring is here and now is a good time to rid the house of paperwork that has accumulated over the past year. Better Business Bureau (BBB) reminds that when you are doing your spring cleaning make sure to properly shred sensitive documents to avoid ID theft.
“When people think of ID theft they almost immediately focus on hackers and online security,” says Lynda Pasacreta, BBB President and CEO serving Mainland BC. “But one of the most common ways ID theft happens is when people have failed to secure or properly destroy important financial information including paper documents, IDs, and credit cards.”
Every year thousands of Canadians become victims of preventable ID theft. Often ID theft occurs when the thief has direct contact with the victim’s personal information such as through a stolen or lost wallet, or by rifling through the victim’s mailbox or trash.
Properly destroying sensitive personal and financial documents is a key step in ID theft prevention and BBB offers the following guide on when to shred the following documents: Cancelled cheques
Cancelled cheques with no long-term significance for tax or other purposes can be destroyed after one year. However, cancelled cheques and other receipts that support tax returns, such as charitable contributions or tax payments, should be held for at least seven years – long enough to cover the six-year retention period. BBB advises that consumers should not shred cancelled cheques and related receipts or documents for a home purchase or sale, renovations or other improvements to owned property, and non-deductible contributions to a Registered Retirement Savings Plan (RRSP).
For information on how long to keep your records, visit the Canada Revenue AgencyDeposit, ATM, credit card and debit card receipts
Consumers should save credit, debit, and ATM receipts until the transaction appears on their statement and they have verified that the information is accurate.Credit card and bank account statements
Credit card and bank account statements with no tax or other long-term significance can be discarded after a year; remaining statements should be kept for up to seven years. If a consumer receives a detailed annual statement, they should keep it and shred the corresponding monthly statements. Credit card contracts and other loan agreements
Credit card contracts and loan agreements should be kept for as long as the account is active in case the consumer has a dispute with their lender over the terms of the contract.
When a new credit card is received, keep the new contract with updated terms and conditions.Documentation of a purchase or sale of stocks, bonds and other investments
Investors should retain documentation of a purchase or sale for as long as they own the investment and then seven years beyond that time. Monthly retirement and monthly investment account statements can be shredded annually after being reconciled with the year-end statement.Paycheque Stubs
Paycheque stubs can be shredded yearly after the income has been reconciled with a T-4 or other tax forms. Utility or monthly bills
Monthly bills should be shredded the year after being received by the consumer. This way, if it’s a power bill, for example, consumers can compare this month’s bill to last year’s bill for any major changes before shredding it.
Shredding Checklist - Don’t just toss it, shred it!
• Documents that include Social Insurance Numbers, birthdates, PIN numbers or passwords
• Banking documents and other financial information
• Leases, contracts or letters that include signatures
• Pre-approved credit card applications
• Medical or dental bills
• Travel itineraries
• Used airline tickets
For more information about identity theft prevention tips please visit the BC Crime Prevention Association