Document Shredding is not only a smart business practice, it’s a legal obligation as well. Identity theft cases are on the rise across the U.S, and therefore the government is becoming more and more involved in implementing regulations for protecting individuals from information misuse.
It’s critical that all business owners in Texas and surrounding areas are well aware of each regulation and what it entails to ensure compliance. Failure to comply with these regulations can result in considerable fines for your organization.
Knowing all the facts surrounding the document shredding industry is extremely beneficial for all organizations of all sizes. The more educated each of us are, the more prepared we’ll be in combating the risks associated with fraud and identity theft.
Compliance and Resources:
Fair and Accurate Credit Transactions Act (FACTA)
The Fair and Accurate Credit Transaction Act (FACTA) is a federal law that pertains to each business in Texas and the rest of the United States. It was established in an effort to reduce and hopefully one day eliminate, the risk of fraud and identity theft. Any organization that fails to dispose of sensitive information securely may face hefty fines of up to $2,500 per file. To find out more, visit this link: https://www.privacyrights.org/facts-facta-fair-and-accurate-credit-transactions-act
Health Insurance Portability and Accountability Act (HIPAA)
The Health Insurance Portability and Accountability Act (HIPAA) states that every hospital, clinic, dental office or healthcare facility that maintains patient information, must act in accordance with specific privacy standards. The intention is to help keep patient records confidential at all times, shredding any patient information that is outdated or no longer of relevance. To learn more, visit this link: http://www.cms.hhs.gov/HIPAAGenInfo
Gramm-Leach-Bliley Act (GLBA)
The Gramm-Leach-Bliley Act (GLB) was primarily designed for banks and financial institutions throughout the Texas region; however, it’s also targeted at any company in general that handles and/or stores personal customer data. The goal of this act is to keep all consumers’ financial details private, and penalize those banks and businesses that fail to meet those standards. For more information, visit this link: http://www.business.ftc.gov/privacy-and-security/gramm-leach-bliley-act
The Sarbanes-Oxley Act is also known as both The Public Company Accounting Reform and Investor Protection Act, and The Corporate Auditing Accountability and Responsibility Act. This is a federal law that was created to safeguard shareholders and the general public from fraudulent behavior and accounting mishaps. Best practices specify that all company records be stored in a secure manner, with specific retention periods in place for safe destruction of outdated material. To learn more, visit this link: http://www.soxlaw.com/
Economic Espionage Act (EEA)
The Economic Espionage Act was put into place by Congress to handle any misappropriation of trade secrets, and to make failure to abide with the act, a federal offence. Certain aspects of this law are crucial to follow when it comes to disposal practices. To learn more, visit this link: http://www.economicespionage.com/EEA.html
Identity Theft Resource Center (ITRC)
The ITRC provides training and presentations on smart business practices and methods of risk reduction for consumers and companies. Find out more details by visiting this link: http://www.idtheftcenter.org/
The Privacy Act of 1974
The Privacy Act of 1974 is a federal law that was put into effect for government institutions in the U.S. This act was created to provide security for private business and consumer information that should be properly stored and shred when disposing. Find out all the facts by visiting this link: https://www.ftc.gov/about-ftc/foia/about-privacy-act
The National Association for Information Destruction (NAID)
NAID dictates industry standards when it comes to the secure destruction of documents, micro media and computer hard drives. As a member of NAID, we guarantee that every step in our storage and destruction process is done so strategically in a manner that reflects NAID principles.
To learn more, visit this link: https://naidonline.org/