It's the Law
"Dumpster diving" has become the primary
source of corporate espionage and
consumer fraud.
So much for the paperless society. As our computers and copiers spew out reams of paper, masses of sensitive information are being generated and often discarded without concern. Plus, industrial espionage and identity theft have become epidemic and are now the fastest growing forms of fraud.
News laws are attempting to combat these security and legal issues. The Fair and Accurate Credit Transaction Act (FACTA) requires businesses to destroy all personally- identifiable information before it is discarded. The Health Insurance Portability and Accountability Act (HIPAA) mandates that all healthcare information processed by businesses be safeguarded.
The Gramm-Leach-Bliley Act requires financial institutions to ensure the security and confidentiality of their customers' information.
In other words, you must safeguard or destroy confidential information. Even with the letter of the law, this form of fraud is still increasing. If you don't shred, your business, your reputation and your clients are at risk.
It's a Fact
In 1988, the U.S. Supreme Court ruled that trash is public domain. "Dumpster diving" has since become the primary source of corporate espionage and consumer fraud in the United States.
In 1999, commercial banks suffered $2.2 billion in fraud-related losses. Of those losses, 29%were check fraud-related. ***
Identity theft was the top consumer fraud complaint in 2001. ****
Annual total loss to businesses due to identity theft approached $50 billion in 2003.**
Approximately 27 million American adults have been victims of identity theft in the last 5 years.*
*FirstGov.com, Federal Trade Commission-sponsored survey Identity Theft Survey Report, 2003
** Ibid
*** American Bankers Association survey, 2000
**** "Identity Theft Heads the Top 10 Consumer Fraud Complaints of 2001", Federal trade Commission, January 23, 2002.