Keeping your documents safe from scammers

What do paparazzi and scam artists have in common? They’ve both been known to dig through someone’s trash to uncover private details and profit from what they find.

While most of us don’t have to worry about reporters snooping around, we do need to keep our personally identifiable information (PII) and our personal documents far from fraudsters.

And living safely and smart involves a lot more than being savvy about your garbage. Read on to learn what scammers can do with your personal documents, how to store them, and how to get rid of them when the time comes.

Why scammers want your documents

Your personal documents are more than just pieces of paper or PDFs. They’re proof of who you are.

In the wrong hands, they give scammers exactly what they need to step into your identity. Because documents often contain multiple pieces of sensitive information in one place: your full name, date of birth, address, account numbers, or government-issued ID details.

“Your personal information is valuable,” writes the Federal Trade Commission. “That’s why hackers and scammers try to steal it.” With, say, your Social Security number, your address, and your phone number, fraudsters can impersonate you and:

• Open new financial accounts, get loans, and lease property

• Change your login credentials and take over your accounts for their benefit

• File bogus tax returns or get medical care

• Get a job with your clean record and valid citizenship or visitor status

The more documents they have, the more they can exploit your identity, and the more they can profit from you.

That’s what makes documents especially valuable. Unlike a stolen credit card number, which can be canceled, the information in your documents is harder to replace and easier to reuse. It can be combined, copied, and applied across banks, employers, healthcare providers, and government services.

And documents don’t have to be stolen in dramatic ways—they’re often taken from mailboxes, pulled from discarded paperwork, lost with devices, or accessed through poorly protected digital files.

Personal documents you should protect

Most of us know to keep our Social Security cards private and safe. But many other everyday documents are also valuable to scammers.

The Federal Emergency Management Agency (FEMA), the governmental group that helps victims of natural disasters, keeps a running list of a person’s most important documents in the hope that we will store them safely before calamities strike. Some of those documents include:

Household documents

• Vital records: birth and marriage certificates, divorce decrees, adoption and child custody papers

• Citizenship documents: passports, green cards, and visas

• Driver’s licenses

• Military service IDs

• Social Security cards

Financial and legal documents

• Housing materials: mortgages, rental agreements, HELOC papers, and deeds

• Vehicle records: registration, titles, and loan documents

• Financial account materials: checking and savings account statements, debit and credit card statements, and retirement or investment accounts

• Insurance policies: homeowner’s, car, life, and flood insurance policies

• Income records: canceled paychecks (or stubs) and government benefits

• Tax statements: federal and state returns, property tax bills, vehicle tax bills

• Estate planning documents: wills and powers of attorney

Medical documents

• Health and dental insurance cards and paperwork: Medicare, Medicaid, and Veteran Health Insurance cards

• Caregiver agency contracts

• Assisted living agreements

How to store your personal documents

These days, we all have a mix of paper documents and IDs as well as digital versions. How you store them safely obviously depends on the category.

Many of the same steps FEMA recommends to protect your documents from natural disasters also help protect you from scammers.

• Paper documents and IDs should be placed in a waterproof and fireproof lockbox. Whether that’s a safety deposit box at a bank or a safe you keep at home is up to you. You can buy the latter online, at big-box stores, office supply stores, and more.

• Digital documents and IDs should be stored in a secure cloud-based service, or on a password-protected external drive or flash drive. Note that in both cases, ideal digital storage does not include your hard drive. Why? Your accounts or devices could be hacked, and your documents could be stolen.

How to protect your documents and information

Good document defense tips span the paper and digital realms and include the following:

• Protect your paper mail. Don’t let mail sit overnight. Try to pick it up the same day it’s delivered, especially if you’re expecting bills, checks, or new cards.

• Pause delivery when you’re away. If you’re traveling, put a hold on your mail or ask a neighbor you trust to collect it.

• Hold on to sensitive documents for the right length of time. Keep vital records and titles indefinitely, bank records and pay stubs for one year, and tax returns and supporting materials for seven years.

• Dispose of documents properly. Shred paper and plastic documents at home or with a safe shredding service like those at office supply stores.

• Update your operating systems on your devices. Doing this means the most current security systems—the ones specifically designed to combat current threats—are protecting your PII.

• Practice good password protection. Don’t let one password do all the work. Use a password manager and always enable biometric and multi-factor authentication when available.