It’s convenient, secure, safe, environmentally friendly and it's the law.
Due to improper disposal of confidential information, identity theft has now become one of the fastest growing crimes. According to the Fair and Accurate Credit Transactions Act (FACTA), “dumpster diving” allows identity thieves to easily access individual’s private information.
With an increase in identity theft and mandated state and federal regulations businesses whether large or small are required to maintain appropriate safeguards in order to ensure the protection of its clients and employees identity. In a nationwide effort to reduce the risk of identity theft, laws were established which requires businesses to develop and implement processes to properly dispose of their client’s personal information.
Health Information Privacy
Congress passed the Health Insurance Portability and Accountability Act (HIPAA) in 1996. HIPAA regulations require covered entities and business associates to develop proper procedures that secure protected health information (PHI).
Federal Document Destruction Regulations
The Disposal Rule requires the proper disposal of any and all identifiable information obtained from individuals. In an effort to reduce identity theft and fraud the rule has been implemented which requires businesses to take applicable measures to protect individual’s personal information. Any business or individual who uses a person’s individual information for business matters are required to adhere to the Disposal Rule.
Privacy of Consumer Financial Information
The Gramm-Leach-Bliley (GLB) Act requires financial institutions to ensure the security and confidentiality of its client's personal information. As part of its implementation of the GLB Act, the Federal Trade Commission (FTC) issued the Safeguards Rule, which requires financial institutions under FTC jurisdiction to have measures in place to keep customer information secure.
Under the GLB, financial institutions must provide their clients a privacy notice that explains what information the company gathers about the client, where this information is shared, and how the company safeguards that information.
Fair and Accurate Credit Transactions Act (FACTA)
According to the FACTA the practice known as "dumpster diving" provides identity thieves with unlimited access to individual’s personal data. Irresponsible information disposal by businesses has been cited in numerous instances of fraud. Now under FACTA provisions consumer reporting agencies and any business that uses a consumer report must adopt procedures for proper document disposal.