The advice comes after plastic bags for recycled paper were stolen from homes in Worthington near Coalville.
It is they feared thieves were trying to get personal information such as bank statements.
Martin Gill from the University of Leicester said such paperwork should be shredded or burnt.
Refuse advice
Prof Gill added: "We have known for some time this is one potential route towards identity theft.
"It really just underlines the importance of being careful when you get rid of documents like this.
"You should only throw them away once they are in a form that no one else can use."
Nicholas Rushton from North West Leicestershire District Council, said: "Our recycling teams are happy to collect shredded paper in the blue recycling bags.
"All we would ask is that all shredded paper is packaged with other forms of paper like newspapers and magazines to reduce the risk of it being blown around."
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