Not all businesses should not shred. Shredding paper. To defend consumers privacy and combat id theft a series of data protection laws have been passed. These laws oblige companies to preserve personal info and after that to destroy it. There aren’t only state laws that must proper destruction of personal info, but additionally national laws. One such law is the Medical Portability and Insurance liability insurance that applies to the patient health information. The law was expanded with the passage of the American Recovery and Reinvestment Act. HIPAA requires all patient info to be destroyed.
Unless of course, you have an incinerator then shredding is the only acceptable option. The law affecting every company is the Fair and Accurate Credit Transaction Act and the latest edition of the red flag rule issued by the FTC. Any company that collects, manages or facilitates credit should have a procedure to destroy identifiable information. This law is more rigorous than HIPAA and demands more due diligence to the destruction procedures. Nobody will look in the trash. There are various individuals who go through businesses trash. The first is the cleaning staff who manages each wastebasket and could be lured to take private information.
Once from the dumpster, your trash is now considered public property by the Supreme Court. Folks go through dumpsters looking for boxes or recyclables. When they locate personal info they usually report it to the police and media. You wind up on the 5 o clock news answering some difficult questions. Some media outlets forget the middleman and dig the trash to see if they’ve got an easy story. Yet, company spies or individuals looking to harm a business will start with the dumpsters. It’s best to have too many records. Enterprises are required by law to sustain many different records.
These can be necessary for a variety of many reasons beyond taxes. But, there’s also a probability of keeping records past their usefulness. Worker records from decades ago supply no value, but when stolen could place people at risk of identity theft. This is also an easy place to steal info and it’s not likely the thief would get connected to the crime. Expired documents can be used against a business in suits. All businesses must have a set storage policy which includes the shredding of expired documents.