WHY SHRED?
Most organizations and businesses routinely destroy their confidential information to:
- PROTECT their customer’s privacy
- PREVENT Identity theft
- SAFEGUARD proprietary business and trade information
- COMPLY with federal laws
The proper destruction of consumer and personal health information (PHI) information before it is discarded is regulated primarily by two federal laws known as FACTA and HIPAA.
FACTA (the Fair and Accurate Credit Transaction Act) is designed to reduce the risk of consumer fraud and identity theft created by improper disposal of consumer information. FACTA requires the destruction of consumer based information before it is discarded by taking reasonable measures to protect against unauthorized access to or use of the information.
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Reasonable measures are defined by FACTA as “burning, pulverizing, or shredding of papers containing consumer information” or entering into “a contract with another party engaged in the business of RECORD DESTRUCTION”.
FACTA applies to virtually every business, organization and individual who generates or has consumer information. This includes:
- Financial Institutions
- Insurers
- Employers
- Landlords
- Governmental Agencies
- Mortgage Brokers
- Auto Dealers
HIPAA (the Health Insurance Portability and Accountability Act) is designed to prevent abuses of personal health information (PHI), to include unauthorized access. Organizations that must comply with HIPPA include:
Hospitals
- Medical Centers
- Insurance Companies
- Doctors
- Dentists
- Counselors
- Urgent Care Centers
- Therapists
FACTA is regulated by the Federal Trade Commission (FTC) and HIPAA is regulated by the U.S. Department of Health and Human Services (HHS). Potentially severe penalties await violators of these privacy laws. These penalties could involve federal enforcement, state enforcement, civil liability and class action where a large number of consumers are affected.
Why owning an office shredder will not protect your business.
- Shredded materials from an office shredder are relatively easy to put back together. There is technology available that electronically scans shreds for the purpose of reconstructing documents. Omega’s solution makes it impossible to reconstruct any single document.
- Employees don’t use shredders consistently. Busy employees often decide to throw documents out rather than consume valuable time using a slow office shredder.
- Employees should not handle some sensitive information.
- Office Shredders break down, will not work with large record purges and may not be able to handle some materials such as binders, paper clips and staples.
- Shredding yourself does not provide a record of compliance in the event of a privacy violation.
What Should be Shredded?
Legal Documents - Medical Files - Invoices - Payroll Records - Customer Lists -Credit Information - Financial Statements - Tax Records - Personal Information Proprietary Trade Information
