Protect your Identity
The Federal Trade Commission estimates that as many as 10 million Americans have their identities stolen each year. The FTC lists "Dumpster Diving" at the top of the list for identity theft. Dumpster diving is where thieves rummage through trash containers looking for bills or other paper with personal information on it. Many companies collect personal information from their customers, including names, addresses, and phone numbers; bank and credit card account numbers; income and credit history; and Social Security numbers. Strict laws have been passed to protect the privacy of both businesses and individuals, such as:
Federal Legislation
The Fair and Accurate Credit Transactions Act (FACTA) protects safe disposal of consumer information. Any business that maintains consumer information must "take reasonable measures to protect against unauthorized access or use of the information in connection with its disposal." FACTA requires burning, pulverizing or shredding, with noncompliance resulting in federal (up to $2,500 per violation) and state (up to $1,000 per violation) fines, civil liability ($1,000 per employee) and class action lawsuits.
The Health Insurance Portability and Accountability Act (HIPAA) of 1996 ensures that U.S. healthcare organizations safeguard patient information and privacy including secure disposal of any personal information. HIPAA noncompliance can result in criminal penalties reaching $250,000 and up to 10 years in prison and civil fines of up to $25,000 a year.
Gramm-Leach-Bliley (GLB) requires banking and financial institutions across the United States to describe how they will protect the confidentiality and security of consumer information. GLB noncompliance can result in institutional civil penalties of up to $100,000 for each violation, personal civil liability by officers and directors of up to $10,000, class-action lawsuits and imprisonment for up to five years.
The Economic Espionage Act (EEA) of 1996 establishes monetary fines for the misappropriation and theft of trade secrets for companies who do not take "reasonable measures" such as secure document destruction to safeguard their information. A defendant convicted for theft of trade secrets under Section 1832 of the EEA can be imprisoned for up to 10 years and fined $500,000. Corporations and other establishments can be fined up to $5 million.
State Legislation
New Jersey’s Identity Theft Prevention Act (ITPA) applies to all businesses that operate in New Jersey and all businesses that collect and store personal information about New Jersey residents. Section 11 states: “A business or public entity shall destroy, or arrange for the destruction of, a customer’s records within its custody or control containing personal information, which is no longer to be retained by the business or public entity, by shredding, erasing, or otherwise modifying the personal information in those records to make it unreadable, undecipherable or nonreconstructable through generally available means.”