subject: FACTA Compliance and Why Its Important [print this page] FACTA Compliance and Why Its Important FACTA Compliance and Why Its Important
Have you heard of FACTA? What about HIPAA or GLBA? Do you know what they stand for? While we are only discussing FACTA in this article, did you know most businesses have to adhere to one or more of them? Chances are you may not know. FACTA stands for the Fair and Accurate Credit Transaction Act. It adds to the Federal Credit Reporting Act (FCRA). The sole purpose of FACTA is to prevent identity theft, by protecting the personal and private information of consumers and businesses. It is one of the laws that businesses in the United States have to comply to, often referred to as FACTA compliance.
It is the responsibility of businesses to protect their consumer's sensitive information. While they have the sensitive information, they have to protect both the data and print versions of the documents. When it comes time for the company to destroy or get rid of that information, they must make adequate strives to destroy it in such a way to prevent thieves from salvaging it.
One of the best defenses in destroying sensitive documents is to use a paper shredder. In particular, crosscut shredders provide ultimate security against thefts by shredding the documents into very small pieces that would take a very long time to piece back together, making it nearly an impossible task. There have been great advancements in shredder features. Some shredders can shred more then 28 pages at a time. Some can shred credit cards, CDs, DVDs, paperclips, and staples. Some have auto oil features and many have shredder safety features that turn the shredder motor off when it senses fingers, paws or hands near the opening.
When you think about your financial documents, you can clearly see why criminals want to grab your documents and you see why it is important that companies protect and adequately destroy those documents. There are more laws, besides FACTA that seeks to protect consumers, such as HIPAA and GLBA. Your company needs to know the laws and protect the sensitive data, or you may be at risk for penalties and responsibility for damage to your consumer's identity.
