New FACTA Law Makes Shredding More Important Than Ever

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 by investing in an office paper shredder or a home paper shredder. 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.

Examples of Facta Compliant Paper Shredders:

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:

• burning, pulverizing, or shredding of physical documents
• erasure or destruction of all electronic media

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 destroy information, such as recyclers, waste management or technology disposal companies
• service providers that store consumer reports and information, such as record and information management 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.

There are two types of paper shredders: stripcut and crosscut. The stripcut shredder produces long strands of shredded paper. For bulk shredding, stripcut shredders can shred a large volume of paper in a short amount of time. The crosscut shredder provides better security because it shreds the paper into smaller particles. The crosscut shredders are great for personal information such as credit card information, bank statements, and employee records. The crosscut shredder needs to be oiled to maintain the cutting cylinders but will save the consumer on replacing bags because of such a small shred.

For more information on paper shredders, contact our friendly sales staff.