Identity theft affects millions of Americans each year. We all hope we won’t fall victim to it, yet statistics suggest that it’s likely to impact one in twenty individuals—and that person could easily be you. Your business faces a heightened risk of becoming a victim if it doesn’t adhere to the laws governing the proper disposal of sensitive information at the end of a document’s lifecycle. Rules may sometimes seem burdensome, but they’re designed to shield your business and U.S. citizens from the theft of confidential personal data. The Federal Trade Commission (FTC) devised the FACTA rule to combat identity theft and provide the best means of reducing the risk of your business being targeted.
The Fair and Accurate Credit Transactions Act (FACTA), an amendment to the Fair Credit Reporting Act, was formulated to safeguard consumers from identity theft and fraud. The rule mandates disposal practices that are “reasonable and appropriate to prevent unauthorized access to, or use of, information.”
Application
FACTA applies to nearly every business, including yours, especially when utilizing consumer reports that involve:
- Credit reports
- Employment backgrounds
- Check-writing history
- Credit scores
- Insurance claims
- Medical histories
- Residential records
Implementation
Your organization must adopt proper measures to safeguard all private information throughout its lifecycle, from creation to destruction, whether it’s stored electronically or on paper. The disposal rule mandates that businesses securely destroy sensitive consumer information when it’s no longer required. This reduces the risk of criminals accessing discarded business records and exploiting the information for identity theft. While several document destruction methods are available, secure shredding stands out as one of the most effective options. Consider the following practices for implementing FACTA within your company:
- Educate your staff about FACTA and their role in upholding compliance within your business.
- Formulate a comprehensive security policy accessible to all staff, detailing the proper procedures for information destruction.
- Partner with a professional destruction company that can securely shred your documents and destroy hard drives to prevent retrieval or reconstruction. A professional shredding company will furnish you with a Certificate of Destruction, aiding your business in FACTA compliance.
CI Information Management provides mobile shredding and hard drive destruction services to businesses and residents of Southeastern and Central Washington state and Northeastern Oregon. We can also provide you with a Certificate of Destruction when the job is complete. We hold NAID AAA Certification, ensuring the secure protection and proper destruction of your information. Reach out to us at 509-586-6090 or complete the form on this page to guarantee your business’s FACTA compliance.
