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FACTA & Identity Theft; What Your Business Needs To Know

Retailers and consumers in the United States are fortunate to have federal and state laws that aim to avoid identity theft. Perhaps the most well-known and overarching law in the land to help combat this modern-day concern is FACTA. The Fair and Accurate Credit Transactions Act (FACTA) is an amendment to the Fair Credit and Reporting Act (FCRA) designed specifically to protect all consumers from identity theft.

For those less familiar with the term, identity theft is simply when someone unauthorized gains access to personal information that can serve as an identifier, and then use that information to commit fraudulent actions or activities. Many consumers don’t realize how easy it is for compromising information to land in the wrong hands. ATM receipts, veterinarian invoices and other seemingly common documents can reveal information that can produce damaging consequences when in the wrong hands.

How do fraudsters get their hands on this information? Dumpster diving is a surprisingly common method where thieves go through dumpsters and trash bins looking for paper documents that might contain revealing information. Phishing, mail and phone scams are also methods that thieves use to collect information.

So how does FACTA help prevent identity theft from occurring? FACTA includes stipulations concerning the proper management and disposal of consumer information, and outlines punishments for organizations that face breaches. It also outlines required courses of action for businesses in the event of a data breach. FACTA also forces credit reporting agencies to provide credit reports to consumers free of charge. This is so that it becomes easier for consumers to monitor their credit for changes that could potentially occur fraudulently.

For business owners, understanding FACTA is vital to keeping your customer’s information secure, and to keeping your business out of legal trouble. FACTA impacts essentially all businesses and consumers in the United States. Businesses are expected to take reasonable measures to make sure that consumer information stays safe, and consumers are entitled to damages incurred due to non-compliance.

Reasonable measures for document destruction include burning, pulverizing and destruction. As a NAID member Security Shredding NJ understands the proper methods to destroy documents to meet FACTA compliance. Our work is guaranteed after each appointment, and we can undertake destruction services both on-site and off-site.

If your business is concerned about whether its meeting FACTA requirements, don’t hesitate to contact us today!

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