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How the FACTA Disposal Rule Affects Your Business

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Top view of a computer keyboard with two wrenches laying across the keys. Two keys are highlighted: one yellow key with the words "Personal Data" and one grey key with the word "Protection"About one of every twenty Americans are affected by identity theft. Affected US citizens lose $17 billion annually.

What Does FACTA Require?

The Fair and Accurate Credit Transactions Act (FACTA) Disposal Rule requires your business to properly destroy and dispose of sensitive information at the end of its lifecycle. The purpose of the disposal rule, enforced by the FTC (Federal Trade Commission), is to protect US citizens against unauthorized use or access to their confidential personal data.

Who Does FACTA Affect?

Some privacy laws apply to specific organizations. FACTA applies to almost every business and private employer. Your business is subject to FACTA laws when you use a consumer report for business purposes. Consumer reports involve:

  • Credit reports
  • Employment backgrounds
  • Check-writing histories
  • Credit scores
  • Insurance claims
  • Medical histories
  • Residential records

Why Was FACTA Enacted?

As mentioned, the law is meant to protect the private information of US citizens. When your organization fails to do so, you could face federal or state penalties, civil or class action lawsuits, and damage to your organization’s reputation. It is also not uncommon for businesses to failing due to legal action and financial repercussions.

How to Adhere to the FACTA Disposal Rule

The law requires organizations to take responsibility and proper measures to protect private information from the moment it is disposed of until it has been completely destroyed. This includes all information saved on both paper and electronically.

  1. Train Staff

All members of your organization should understand FACTA and what their role is to ensure your organization remains compliant. Staff should be trained upon hire as well as at key intervals of their employment.

  1. Provide a Security Policy

Have a security policy available to all staff that explains the proper procedure for all to follow for information to be destroyed.

  1. Use a Professional Destruction Company

If your organization utilizes a DIY process for destruction, your business may be at risk of not being fully compliant with the FACTA Disposal Rule. Ask these initial questions:

    • Are your documents and electronics protected from the moment they are discarded or taken out of service? This includes the storage or disposal of hard drives, thumb drives, and other electronic media and data.
    • Do you have proof that the information was fully and securely destroyed? Is your paper shredded so that the resulting material is unreadable and can’t be reconstructed? A professional shredding company can accomplish all of this, as well as provide a Certificate of Destruction after it is destroyed, assisting your business with FACTA compliance.

Wiggins Shredding provides secure shredding and destruction services to Pennsylvania and Tri-State MD, NJ and DE organizations. We can destroy your paper and e-destruction that is FACTA Disposal compliant. You can drop off your documents or electronics at one of our secure locations or we can help you with one-time or scheduled shredding service at your location. Just give us a call at 610-692-TEAR (8327) or complete the form on this page.

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