Shredding and the Law: Avoiding Fines for Mishandling Confidential Documents
In the current society, organizations and companies gather or hold a huge amount of personal information. This information usually includes customer records, the financial data, employee records, and contracts among others. In most of the cases, such information can cause severe legal issues. Making the wrong shredding of confidential documents is one of the greatest errors any business may have committed. It is not only such error that may trigger identity theft and fraud, but also culminate into hefty government fines.
This article will tell you why it is important to shred in order to comply with the law, how failing to handle documents properly can cost you fines, and what your business can do so that your business can remain safe and not face such issues.
Why Are There Laws About Document Shredding?
There are laws regarding the shredding of documents as a way of conserving the privacy of individuals. People give very sensitive information such as bank account numbers, addresses, medical records, and social security numbers to businesses. Failure in safeguarding this information would mean that the information can easily be stolen and used to commit fraud or find a victim of Identity theft.
The world governments have come up with laws to ensure that companies have a serious approach to privacy. These regulations inform companies on ways to gather, maintain, exchange and dispose sensitive papers. The most credible mode of destroying paper records is by way of shredding. In case a company disregards them it may become subject to legal suits, huge penalties and law suits.
Examples of Important Privacy Laws
All over the world there are a lot of laws, which demand businesses to shred the documents properly. These are some of its famous ones:
1. HIPAA (Health Insurance Portability and Accountability Act) – USA
HIPAA covers health information and medical records. It requires that hospitals, doctors and insurance companies destroy their documents that contain information about patients when such documents will not be required.
2. FACTA (Fair and Accurate Credit Transactions Act) – USA
FACTA assists to prevent identity theft. There is also a need to have a secure method to dispose of the business papers that have sensitive data about the customers such as credit reports or financial statements.
3. GDPR (General Data Protection Regulation) – Europe
GDPR safeguards the individual info that are in the European Union. The businesses should ensure that they are destroying the legal privacy information in a secure manner and that they cannot place them in ways which can ensure that others are able to access them.
4. PIPEDA (Personal Information Protection and Electronic Documents Act) – Canada
PIPEDA is a privacy law that requires companies to safely dispose of documents containing personal information.
These laws share a common goal: keeping personal information safe and out of the wrong hands.
What Happens If You Do Not Shred Documents Properly?
If a company fails to shred documents properly, it can lead to serious problems, including:
1. Heavy Fines
Breaking privacy laws often results in big fines. These fines can range from thousands to millions of dollars, depending on how serious the mistake is.
2. Lawsuits
In case of leakage of the personal data of the individual due to inefficient document practice, the individual can sue the business. Court cases are very expensive for a company; they cost money and even smear the reputation of a company.
3. Loss of Trust
Businesses must ensure the safety of information of customers, clients, and partners. In case your business does not do it, people will lose faith and give their business to someone.
4. Damage to Reputation
News spreads fast when companies mishandle private information. A single mistake can cause long-term damage to your business’s good name.
How to Stay Compliant with the Law
To avoid fines and legal problems, your business should have clear rules about how to handle and shred documents. Here are some simple steps to help:
1. Create a Document Shredding Policy
Record document destruction regulations. Tell people what should be shredded, how frequently and by whom.
2. Train Your Employees
Ensure that every one in your company is well versed with the shredding rules. Explain to them the necessity to adhere to this set of rules, and teach them to do it in the right manner.
3. Use Secure Shredding Services
Many companies hire professional shredding services to make sure documents are destroyed correctly. These services can shred large amounts of paper quickly and safely. Some companies offer One-Time Purge destruction services to help businesses get rid of old, stored documents all at once.
4. Keep Records of Shredding
In case your company is controlled or checked, it is better to have evidence that papers had been shredded. Shredding organizations normally have certificates, which demonstrate that shredding was done in a safe manner, and it was done professionally.
5. Include Digital Data Destruction
Electronic files are not to be forgotten. Hard drives (old ones), USBs, and computers hold their own share of private information and must be destroyed properly, too.
Final Thoughts
It is not only good business to take care of your confidential documents in the proper way it is also the law. Proper destruction of paper protects your customers, your staff and your business against such evils like identity theft, fraud and even dreadful legal issues. Adhering to privacy regulations and relying on safe shredding practices, your company may save a lot of money on costly fines and preserve its image.
Just a simple error in document procedures may create great problems. Do not risk. Establish an effective shred policy, educate your staff members and collaborate with reputable shredding providers in order to ensure your business remains safe and law-abiding.
The post Shredding and the Law: Avoiding Fines for Mishandling Confidential Documents appeared first on QuintDaily.
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