Intellectual espionage, fraud, unauthorized access to proprietary information. These are just a few of the challenges facing businesses today as information production accelerates and a single instance of unauthorized access could have a devastating effects on your business and for your brand. Additionally, privacy laws and information disposal regulations have increased dramatically. These factors are placing the significant burden of potential liability and litigatory expense squarely on the shoulders of today corporate managers, business owners, and shareholders.
The Fair and Accurate Credit Transaction Act of 2003 (FACTA)
In 2003, The Federal Government mandated that minimum standards be created to minimize the risk of identity theft and consumer fraud. As a result, the Disposal Rule was issued by the Federal Trade Commission (FTC) in 2004. By 2005 specific language in the Disposal Rule stated that “any person who maintains or otherwise possesses consumer information for a business purpose” must take “reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal”.
“Consumer information” was defined as any record, compilation of records, or personal data construed to having been acquired from personal or individual consumer data.
The FTC included two examples of “reasonable measures” with regards to the protection of data from unauthorized access. These examples were the shredding, burning, or pulverization of paper data, as well as the destruction or erasure of non paper electronic media.
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