What is HIPAA?
The Health Insurance Portability and Accountability Act (HIPAA) is a Federal Law to prevent abuses of personal health information (PHI), including unauthorized access. It is administered by the U.S. Department of Heath and Human Services (HHS) and it is enforced by the U.S. Office of Civil Right.
Using a Secure Shredding Service, like Hill's Shred Express, is the preferred method for Institutions that must comply with HIPAA to destroy protected heath information.
How it works
The NAID member provides collection containers for confidential materials (or you can use your own). On a schedule that fits your needs, the NAID member collects the confidential material for destruction. After your confidential material has been destroyed, you will receive a Certificate of Destruction which is necessary in compliance with the new privacy requirements.
What is FACTA?
FACTA is the Fair and Accurate Credit Transaction Act, a new federal law designed to reduce the risk of consumer fraud and identity theft created by improper disposal of consumer information.
What You Should Know About the FACTA Disposal Rule
- It applies to virtually ever person and business in the United States.
- It requires the destruction of all consumer information before it is discarded.
- Potentially severe penalties await violators.
FACTA Applies to Virtually Every Person and Business in the United States
The Federal Trade Commission (FTC) has issued the FACTA Disposal Rule, and while the FTC has singled out:
- Government Agencies
- Mortgage Brokers
- Automobile Dealers
FACTA Requires the Destruction of Consumer Information Before it is Discarded
According to the FTC's FACTA Disposal Rule: "Any person who maintains or otherwise possesses consumer information for the business purpose must properly destroy discarded consumer information.
The FTC's FACTA Disposal Rule further states that "Every person and/or business must properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal."
Reasonable measures are defined in FACTA as "Burning, pulverizing, or shredding of papers containing consumer information or entering into a contract with another party engaged in the business of record destruction to dispose of material, specifically identified as consumer information, in a manner consistent with this rule."
Potentially Severe Penalties Awaits Violators
FACTA provides substantial civil liability. In some cases, consumers may be entitled to recover their actual damages sustained as a result of a violation of the rule which in the case of identity theft, could be very large.
In other cases, consumers may be able to recover statutory damaged of up to $1,000 for each consumer affected by a violation of the rule.
When large numbers of consumers are affected, they may be able to bring class actions seeking potentially massive statutory damages. If 1,000 consumers were affected, a class action might be up to $1,000,000 in statutory damages. Courts are also authorized to award punitive damages in either an individual suit or a class action. Finally a successful plaintiff or class of plaintiffs may recover reasonable attorney's fee.
The federal government is also authorized to bring enforcement actions in federal courts for violations of the disposal rule. In some cases, the government may bring an action in federal court for up to $2,500 in penalties for each independent violation of the rule.
The states are also authorized to bring actions on behalf of their residents, and in appropriate cases may recover up to $1,000 for each willful or negligent violation of the rule. In cases involving multiple violations, such statutory penalties might quickly add up to very large sums. As with private lawsuits, moreover, the state may recover its attorney's fees if successful in such an action.
Complying with FACTA
Contracting Hill's Shred Express to shred all discarded consumer information is the best way to comply with FACTA. Service can be arranged on a schedule that suits any office. It is the most economical alternative no matter how small or large the need.
Any Way You Cut It
No matter how big or small and office, using a NAID member is the best way to comply with the FTC's FACTA Disposal Rule!
Office shredders must be replaced often, are messy, can't take staples and clips, can't handle film and computer disks, take time away from the real office work, are not used consistently by employees (Creating a high-risk situation).
As a Better Alternative Consider Using a NAID Member
- Provides convenient security collection containers making it easy and convenient for employees to use.
- Destroys it fast, whether it is 10 pounds, or 1,000 boxes.
- Shreds staples, slips, film and CD's with no problem.
- Frees employees to do their real job.
- Is cost effective. The smaller the office, the more economical the service (the less you have, the less it costs).
How it Works
- The NAID member provides collection containers for confidential materials (or you can use your own).
- On a schedule that fits your needs, the NAID member collects the confidential material for destruction.
- Afterwards, you receive documentation to establish that you are complying with the new privacy requirements.
It is Fast, Secure, Economical, Effortless and the Right Thing to Do
Consumer information stored on computers is also covered by the FACTA Disposal Rule. One hard-drive or CD can contain thousands of files. Simply pressing the delete button does not destroy the information. Ask a NAID member about your options.