Consumers urged to shred financial documents

As the risk of identity theft increases, a fresh warning has been issued over the risk posed by recycling documents.

14:50 13 July 2005

As the risk of identity theft increases, a fresh warning has been issued over the risk posed by recycling documents.

Fraudsters have been known to poke around in bins for discarded letters, documents, and bills which give them enough information to steal someone's identity to take out credit cards in their name, or get new cards for existing accounts sent to them.

And putting bills and direct mail in paper recycling bins simply makes the job easier - offering fraudsters an open goal.

But new research from credit protection service MyEquifax.co.uk reveals that there could be a conflict between the desire to recycle and the need to protect against fraud by shredding personal documents.

MyEquifax asked 96 English councils about their attitude to recycling, finding that 29 per cent say that they do not collect shredded paper.

Even councils that do accept shredded paper often require it to be separated from other paper waste, the credit service adds.

"Leaving sensitive material intact when recycling is an open invitation to fraudsters and is like giving them a gold credit card," commented Neil Munroe, external affairs director of MyEquifax, adding that it is "essential that consumers shred documents such as bank statements, bills and direct mail".

"A bank statement or electricity bill provides enough information for them to take a person's identity and rack up huge amounts of debt in the victim's name. It is therefore vital that consumers continue to shred documents to protect themselves against ID fraud, especially as so many recycling bags and boxes are left outside houses, often for more than a day before they are collected."