|With the number of fraud cases each year, shredding compliance laws have become more stringent to protect individual’s information. The Fair and Accurate Credit Transaction Act (FACTA) was put into place to guard private information from being unlawfully accessed by unauthorized persons. Since these laws bring stiff penalties and fines of up to $1,000 on a state level and $2,500 on a federal level per each violation, it is in the best interest of all business to understand and comply with shredding laws.
All businesses that handle client’s personal information are mandated to destroy documents according to specific standards that are put in place by the state in which the business is located.
Researching and understanding what the laws are in your state in regards to your specific company, will help you to serve your clients the best. Also, by adhering to these laws, you will save your business from potentially paying out large amounts of money in penalties and fines. Abiding by the proper shredding policies of private information is in the best interest of all parties involved.
It is important that once you are aware of the laws you must abide by when destroying a client’s private information, that you create an effective plan. Strategizing for successful shredding policies will keep your business from violating these mandates and keep you from being liable for lawsuits. There are a number of companies that are trained to handle the destruction of private documents and can give you peace of mind when it comes to abiding by the current HIPPA mandates. Even with the assistance of a professional company, there still needs to be proper handling instructions of this information implemented by all employees in the company. Until the documents have been shredded and destroyed, certain protective measures should be kept.
Keeping vital and private information safe for your clients is the responsibility of everyone in the company. It should be handed down to employees of the utter importance of shredding policies. All employees should be educated on how to handle these procedures efficiently and effectively. Employees that are found guilty of negligence in handling sensitive information should be held accountable in some way. The owners of the business will be held responsible by the courts of law even if it is an employee that does not adhere to the laws concerning the shredding of personal documents.
As a business owner, it is your responsibility to understand the laws regarding the shredding of documents, plan out and implement a policy, and enforce the procedures with employees.
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