Your Deactivated Credit, Debit Card Can Cost You Dearly – Here’s How To Safely Dispose It

Dumpster diving fraud involves looking through trash bins for discarded financial items, including old credit cards, bank envelopes, or receipts, which could lead to financial loss for the original holder of the card, envelop or the bank receipt. Even an expired or blocked card can hold sensitive information such as your name, card number, and expiry date, which scamsters can retrieve and repurpose them to commit identity theft, make online purchases, or even create duplicate cards.

As more and more people move towards digital and virtual cards, they often forget about the old plastic cards lying around their homes. Some of these cards could end up in bins, some in drawers, and some even discarded along with old wallets. If not destroyed properly, these can become quick targets for fraudsters who know how to extract data even from damaged cards.

After You Close A Card

Once your card is deactivated, it stops working for payments, but the physical card remains a data carrier. The chip and strip remain readable until they are destroyed. Banks remove your details from their system, but they have no control over what happens to the card in your possession. That makes safe disposal your responsibility.

Why Old Cards Are Still Risky

The chip and magnetic strip on your card store information in encrypted form, which could be decrypted using special tools. Even the printed details, like the 16-digit number, your name, and CVV, can be used along with other online information leaks to commit fraud.

Most of the time, scammers use these details to create fake accounts or to impersonate cardholders. Sometimes, this information is linked with leaked databases for running bigger identity thefts. Simply cutting the card once or throwing it in the bin is not enough to prevent this.

How To Safely Dispose Of Cards

Properly disposing of an old credit card only takes a few minutes, but can save you from serious financial loss later. After you have confirmed that your bank has fully deactivated your card, in other words, there are no pending transactions or linked payments that will be active, proceed to physically destroy the card.

Cut the card into multiple small pieces. For instance, focus on the chip, magnetic strip, CVV, and card number. These parts all carry key information, so they need to be cut up individually. The idea is to ensure that no one piece will contain complete data. Once you have cut them, do not throw all the pieces into one dustbin. Spread them out in different bins or throw them out on different days. This will reduce the chance of someone piecing them back together.

If your card has raised or embossed details, scratch or file them off before disposal. A nail file or sandpaper can make the details unreadable. 

Typically, avoid burning or melting the card, even though it might seem like a quick fix. Most credit and debit cards are made of PVC and burning them produces toxic fumes. Cutting or shredding is safer for you as well as the environment. If you can find a shredder that can handle plastic, that's even better.

Most banks and financial institutions these days encourage responsible disposal of cards. Many have collection boxes for expired or damaged cards that are later destroyed via certified recycling channels. You can check with your bank whether such an option is available. If not, e-waste collection points will be a good alternative. 

In case of metal cards, it’s better to contact your bank directly rather than trying to cut them. Banks usually provide a return envelope or accept them at branches for secure disposal.

How To Stay Safe

Even if you use mostly digital platforms for transactions, it’s important to treat physical cards with care. Always make sure a card is inactivated before you dispose of it. Don’t share old card information or photos on the Internet. Keep a record of all closed and active cards so none are left behind in old wallets or drawers. When you replace a card, get rid of the old one immediately.

Your old card may no longer buy anything, but if it falls into the wrong hands, it can cost you dearly. Treat it like any other financial document, such as a cheque book or cash and dispose it of correctly.