The United States Federal Government has passed several laws to help protect consumers from identity theft. Earlier legislation targeted specific industries, but as time progressed Congress identified that everyone needs an aggressive information and document management system in place. It is important to note that all businesses must properly handle and dispose of consumer information regardless of industry.
FACTA: Fair and Accurate Credit Transaction Act of 2005
The Federal Trade Commission's FACTA (Fair and Accurate Credit Transaction Act) Disposal Rule went into effect June 1, 2005. It is the most recent, widespread and comprehensive piece of such legislation to date, and the first national shred law of any kind.
Who must comply? Everyone. The law states that "any person who maintains or otherwise possesses consumer information for a business purpose" must properly destroy discarded consumer information. This new rule applies to virtually every person and business in the United States!
FACTA requires the destruction of all discarded personal information contained on a credit report or derived from a credit report either through the implementation of their own document destruction policies or by contracting with a document shredding company.
Penalties for violating the rule include actual damages, statutory damages up to $1,000, punitive damages per violation (with no cap on class action damages), attorneys' fees and civil penalties up to $2,500.
Sarbanes-Oxley Act of 2002
Legislation affecting corporate governance, financial disclosure and the practice of public accounting that protects investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws.
Who must comply? Most public companies report financials to consumers.
Gramm-Leach-Bliley Act: GLB Act, Financial Modernization Act of 1999
Protects consumers' personal financial information held by financial institutions.
Who must comply? Banks, securities firms, insurance companies and any other company that provides financial products and services to consumers.
HIPAA: Health Insurance Portability & Accountability Act of 1996
Federal law to prevent abuses of personal health information (PHI). including unauthorized access. The law is administered by the U.S. Department of Health and Human Services, and is enforced by the U.S. Office of Civil Rights.
Who must comply? "Covered Entities," which is every employer in the U.S. with completed health insurance applications or injury reports on file.
Greenstar stays up to date with the most current regulations to ensure that our customers are well protected. Contact Greenstar and let us help you comply with identity protecting legislation.