Why Shred

ON-SITE DOCUMENT DESTRUCTION

WHY SHRED?

Identity theft is the fastest growing non-violent crime and now ranks the number one fraud complaint by U.S. consumers, according to the Federal Trade Commission. It affects approximately 900,000 new victims each year. A thief simply needs an ID number, such as a driver's license number or a social security number to wipe out a victim's life savings, ruin their credit, and cause unending problems that can take years to repair.

U.S. companies are loosing an estimated $100 billion a year to information thieves, according to a survey by the American Society of Industrial Security and Price Waterhouse Coopers. Of the companies surveyed, more than half reported at least one instance of theft. The greatest threats come from trusted insiders--current and former employees, contractors, consultants and suppliers.

Every business produces proprietary and confidential information, and is responsible, by law, to properly dispose of these sensitive documents. Recent Federal and State legislation holds businesses to higher standards of confidentiality. Today's information explosion can be devastating for a business. A company's trash is a great source for these sensitive information for identity thieves and corporate scavengers currently farming America's trash.

THE LAW

The Fair and Accurate Credit Transaction Act of 2003 (FACTA) was signed into law December 4, 2003. The Act contains provisions intended to combat consumer fraud and related crimes, including identity theft. Moreover, business identity theft is rampant. The Better Business Bureau recommends rigorous control of all company information, including the shredding of documents.

The Health Insurance Portability and Accountability Act (HIPAA) was enacted in 1996 and includes provisions intended to protect and safeguard the privacy of patients' health records and information at human resources benefits administration and medical offices including health service providers at hospitals, pharmacies, clinics and laboratories.

Under HIPAA is the Final Privacy Rule which was released by the Department of Health and Human Services on August 9, 2002. The Final Privacy Rule limits and regulates the disclosure and use of individually identifiable health information that is received by a health care provider, health plan, public health authority, employer, life insurer, school or university, or healthcare clearinghouse. HIPAA regulations have established strict financial penalties for the improper disposal of medical records and specifies shredding as a recommended form of document disposal.

The Gramm-Leach-Bliley Act requires companies engaged in financial activities to provide secure handling of client records and information. These companies include banks, mortgage and finance companies, brokers and underwriters, securities and investment firms, providers of tax return preparation, financial advisors and credit counselors, residential real estate settlement services, and non-bank financial service firms. This Act mandates that all financial institutions that collect information from their own customers as well as financial institutions -- such as credit reporting agencies -- to devise, implement, and maintain safeguards in order to protect customer information.

The Sarbanes-Oxley Act was passed by Congress on July 30, 2002 in order to implement changes in corporate governance, federal securities regulations, and the regulation of auditors. This legislation was mainly in response to the Enron/Anderson scandal. This Act establishes a Public Company Accounting Oversight Board and provides the Securities and Exchange Commission with the authority to mandate rules, set standards and provide oversight and Enforcement over the Board. Businesses affected by this act includes registered public accounting firms, public traded companies and companies registering securities under Securities Act of 1993.

"Your Security Is Our Priority"

email address: psmail@primeshredders.com

(916) 435-4755