By now, almost everyone in America is familiar with the term
"identity theft." Most businesses and a growing number
of individuals are taking steps to protect themselves from becoming
the next victim of America's fastest growing crime. Shredding
documents for disposal has always been a vital step in preventing
ID theft, but in June of 2005, the Disposal Rule section of
the FACTA security law was enacted which makes shredding a necessity
for businesses of any size, as well as individuals who employ
even one person.
FACTA Disposal Rule Defined
Developed by the Federal Trade Commission, FACTA stands for
Fair and Accurate Credit Transactions Act. Designed to minimize
the risk of identity theft and consumer fraud, the Disposal
Rule section of FACTA became law on June 1, 2005. The Disposal
Rule states that any person who maintains or otherwise possesses
consumer or employee information for a business purpose is required
to properly dispose of the information. This includes information
used, or expected to be used, to establish eligibility for credit,
insurance, or employment. In addition, all information contained
in or derived from consumer reports and records must be properly
disposed to protect against unauthorized access to or use of
the information. This part of FACTA was developed to cut down
on the incidences of identity theft by, among other methods,
restricting the ability of thieves to "dumpster dive"
for valuable consumer information contained in discarded business
records. The Disposal Rule goes on to say that all employers
must take "reasonable measures" to protect against
unauthorized access to or use of the information in connection
with its disposal. These measures include:
The main difference between the FACTA Disposal Rule and previously
existing security laws such as HIPAA, Sarbanes-Oxley, and Gramm-Leach-Bliley
is that it does not affect a single industry - it affects every
business and many households in America.
Are You Affected by FACTA?
If you employ someone, then the FACTA Disposal Rule affects
you. Every employer in the US is required to properly and effectively
destroy all documents and material that contain sensitive employee
or consumer information. Specifically, this applies, but is
not limited to:
• businesses that use
consumer information in their everyday operations, such as banks,
lenders, insurers, auto dealers, realtors, and medical facilities
• service providers that store consumer reports and information,
such as record and information management companies
• service providers that destroy information, such as
recyclers, waste management or technology disposal companies
Importantly, the FACTA Disposal
Rule is not limited to only companies or small businesses. It
affects you as the homeowner as well. If you hire a nanny, tutor,
yardman—anybody whose employment requires the exchange of
sensitive information—you are responsible for the handling
and disposal of that information. If you don't shred and information
leaks out, you could be subject to civil or class-action lawsuits,
as well as state and federal fines.
Shredding is Your First Line of Defense
Often, the first thing people think about when it comes to data
security is their computers. Viruses, hacking - they're all
over the news and on people's minds. It's true that hackers
pose a threat, but so does your trash can. Firewalls and security
programs will not protect you from "dumpster diving,"
which remains the most common means of collecting information
used in identity theft. A quality shredder is always your first
line of defense.
MBM's extensive line of Destroyit®
shredders offers the perfect solution for protecting
employers as well as employees. Convenient and easy to use,
Destroyit® shredders have set the world standards for quality
engineering. Unlike shredders from office superstores, the cutting
heads on every Destroyit® are made of the highest quality
tempered steel to ensure years of reliable service and are backed
by a ten-year warranty. Destroyit® shredders may cost a
little more than superstore shredders, but they won't have to
be replaced every few years.
Destroyit®
shredders also provide the peace of mind that comes
from knowing your materials are shredded at the source. Off-site
services will come to your location and shred your sensitive
materials, but that means endless expense and one more point
of human contact (set of eyes) added to the disposal process.
With MBM shredders at your business location or home office,
you eliminate the potential for a wide range of security problems.
Back to Basics with MBM
Laws like the FACTA Disposal Rule are enacted to try and curb
the identity theft epidemic. In 2004, 10 million people were
victims of identity theft. Not only is the number of victims
increasing, the number of identity thieves is increasing as
well, and the threat they pose will only continue to grow. Getting
back to the basics of simply destroying sensitive documents
at the source with a reliable MBM shredder makes perfect sense
- now more than ever. Explore our website, or contact MBM to
learn more about the many shredding options available to you.
For more information about FACTA, visit the Federal
Trade Commission (FTC) website (search for FACTA)
