With increased litigation and concern over identity theft, many companies are being forced by law to develop strict record management policies to manage its records/documents. Identity theft is a serious crime. People whose identities have been stolen can spend months or years – and hard-earned money – cleaning up the mess thieves have made of their good name and credit record.
The great promise of the Information Age also raises new challenges and opportunities for ensuring effective privacy protections. Identity theft is now dubbed “the fastest growing crime of the century.”
- Identity theft is the fastest-growing crime in the USA.
Source: National Crime Prevention Council - Companies are 15 times more likely to experience employee theft than customer theft. Source: ADP.com
- 6% of the American adult population is affected by identity theft. 9 million have had their identities stolen. Source: Better Business Bureau
- Contractors, who were hired by a large consumer products firm, have been caught in the middle of “Dumpster Diving” campaigns at rivals’ headquarters. One professional commented on hitting more than 2,500 dumpsters in the pursuit of corporate information on behalf of their clients.
Source: Chicago Tribune report, 2002 - The Georgia Identity Theft Law (SB 475) specifically mandates companies to “shred, erase, or modify” all personal information before disposal.
- The Gramm-Leach-Bailey Act requires financial institutions to safely dispose of personal information as well as to protect that information while in use.
- Health Insurance Portability and Accountability Act (HIPAA) commands the medical community to protect medical records of patients. The United States Department of Human Services suggests shredding documents as a way of disposing of critical patient information. Fines of up to $250,000 and/or 10 years imprisonment can be imposed for violations of HIPAA laws.
Source: UTMB Office of Institutional Compliance - The Economic Espionage Act of 1996 designates the theft of a trade secret as a federal crime, punishable by extensive fines and/or imprisonment.
- The Privacy Act of 1974 instructs companies to “take reasonable precautions to prevent misuse” of personal information collected by companies.
