New FACTA Law Begs Importance of Data Destruction Equipment
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 this law 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:
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.