New Facta Law Begs Importance of Data Destruction Equipment

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By now, almost everyone is familiar with the term "identity theft." In June of 2005, the Disposal Rule section of the FACTA security law was enacted which makes using shredders, disintegrators and other data destruction equipment a necessity for businesses of any size, as well as individuals who employ even one person.

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.  Using data destruction equipment like shredders and disintegrators to destroy documents prior to disposal has become a neccessity. 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. 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(also including disintegrating)
·        erasure or destruction of all electronic media
The main difference between the FACTA Disposal Rule and previously existing security laws such as HIPAA is that it does not affect a single industry - it affects every business and many households in America.  This means that whatever type of business you are, shredders and disintegrators are integral to your company's security.

When your company employs someone, 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


Every company and situation is different, so contact one of our data destruction experts today, so that they may advise you on the proper data destruction equipment, such as a shredder or disitegrator.