New rules to require all firms to shred papers

New rules to require all firms to shred papers

Author: Toledo Blade

New federal rules effective next Wednesday will require businesses to destroy employee and customer records that contain personal identification information before disposing of the papers.

Experts say the requirements will be a boon to document-shredding firms and will add a chore for small businesses.

But, they add, the requirements might put a dent in identity theft, which has become a $50 billion problem annually for United States businesses and consumers.

A number of the 650 businesses and organizations belonging to the Employers Association have asked what they need to do to comply with the rules, said Connie Wilson, director of human resources research for the group based in Sylvania.

“Once they find out, they’re pretty OK with it,” she said.

The Fair and Accurate Credit Transactions Act of 2003 gave consumers the right to get a free credit report annually and establish a nationwide fraud-alert procedure to help curb identity theft.

But it had the Federal Trade Commission set up the rules for proper disposal of such identification data as Social Security and driver’s license numbers and e-mail addresses.

Often, that information is gathered in background checks and in credit applications and reports.

Many big businesses have routinely destroyed documents with such personal information, said Willie Geiser, president of Allshred Services Inc., in Monclova Township.

But now small business owners as well as banks, mortgage companies, and corporations will have to comply.

“Surprisingly enough, a lot of companies are still throwing [sensitive] material in the trash,” Mr. Geiser said. “I think the law will create a big demand for shredder services.”

Nate Segall, vice president of AccuShred LLC, a Toledo shredding firm, said many businesses are trying to handle the document destruction with their own shredder, but that may not be enough.

“There’s a lot of ‘dumpster diving’ by professional thieves, but a lot of identity theft is also done by disgruntled employees who realize the value of the information,” he said.

“It often pays to have sealed, closed containers [sent to a commercial shredder], not just a low-paid staff member doing the shredding.”

Paper Shredding Services