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That lack of instant access means more work for consumers. Those who want ready access to their files have a couple of choices; they can download and save their monthly statements on their computers (and back up their hard drives regularly), or they can print out copies. The latter option means you still have to deal with clutter and storage issues, but at least you’re keeping your account statements out of the mail.
How much work you’re willing to do may also depend on whether you think you’ll need these documents in the future -- say, for an IRS audit. The IRS does accept electronic copies. But some accountants still want you to keep paper on file, so consult your tax pro before you decide.
Video: Stop identity theft cold
Marching toward paperless
If you’re tempted to follow my lead -- and if your financial institutions offer the option -- here’s what you need to do:- Raise your armor. Anyone cruising the Internet should have a good firewall and software to combat pop-ups, spyware and viruses. If your financial life is on your computer, then you need to be particularly diligent about making sure your protections are in place and updated regularly.
- Monitor your accounts. If the only time you think about or check your accounts is when you get your monthly statements in the mail, you’re probably not a good candidate for going paperless. Most security experts recommend checking your accounts at least weekly. One easy way to stay on top of your accounts is by downloading your transactions into personal finance software like Money or Quicken. The latest incarnations of these programs make the process painless and fast, allowing you to see exactly what’s going on in your accounts.
- Sign up for any e-mail alerts offered. Some credit card issuers will e-mail you when a payment is due, which is nice, but a few go further. American Express will e-mail you if suspicious activity is detected in your account, and Discover will let you know if a charge exceeds a certain limit, which you set. Wells Fargo will let you know if someone requested that your address or PIN number be changed.
- Don’t fall for phishing. The biggest risk to your financial records may be your own gullibility. Among the easiest ways to get taken is to reveal personal financial information, such as account numbers and passwords, in response to an e-mail “alerting” you to a problem in one of your financial accounts. Read Jennifer Mulrean’s “'Phishing' scams: How to avoid getting hooked," so you can recognize and avoid these scams.
Updated Sept, 30, 2009
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