The correct approach for sanitizing a USB thumb drive while preserving its usability is overwriting. Overwriting involves replacing the existing data on the device with random data or specific patterns to ensure that the original information cannot be recovered. This process leaves the physical device intact, allowing it to be reused securely.

Physical destruction, such as shredding, renders the device unusable. Degaussing only works on magnetic media like hard disks or tapes, not on solid-state or flash-based USB drives. Key revocation applies to cryptographic keys and not to physical devices.

By using overwriting, organizations comply with data sanitization standards while balancing operational efficiency. Many tools exist that perform multi-pass overwrites to meet regulatory requirements such as those from NIST or ISO. This ensures that sensitive data is removed while allowing the device to remain in circulation for continued use.