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STOP THE
ILLEGAL DUMPING OF RECORDS!
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| The Need For
Service - Continued |
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| 5.) A Certificate of
Destruction Does Not Relieve A Company From Its Obligation To Keep
Information Confidential |
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Any company contracting an information
destruction service should require that it provide them with a signed
testimonial, documenting the date that the materials were destroyed, not
just picked up. The certificate of destruction, as it is commonly
referred, is an important legal record of compliance with a retention
schedule. It does not, however, effectively transfer the responsibility
to maintain the confidentiality of the materials to the contractor. It
is not something that you "just buy."
Know the company that
you are trusting your records to. Be totally satisfied that they are
reputable and will safeguard the documents and records during the
destruction process. One Texas bank was getting a Certificate of
Destruction and was happy, that is until over 200 customers of the bank
fell victim to identity theft. The recycling firm doing the destruction
was shipping the paper to a pulping facility without shredding it first.
The identity theft ring operated out of the paper mill.
If private information surfaces after the vendor
accepts it, the court is bound to question the process by which the
particular contractor was selected. Any company not showing due
diligence in their selection of a contractor that is capable of
providing the necessary security could be found negligent.
Unfortunately, there are those information destruction services that
provide certificates of destruction while having no semblance of
security, inadequate or no liability insurance, and in some cases no
destruction process available to them to perform the work.
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| 6.) Most Records Storage
Companies DO NOT Have The Equipment To Provide Shredding Services. |
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Many commercial records storage facilities
offer records destruction as a service to their customers. However, in a
survey conducted by the National Association for Information
Destruction, a majority of the commercial storage firms were found
lacking the equipment necessary to provide the service themselves. One
local west Texas company was taking them out on a private ranch and burning (?)
them. Another simply out-sources the destruction to recycling firms
that may or may not shred the records.
Any business using a commercial records storage firm
should inquire as to the nature of the destruction services that are
available and forbid outsourcing the destruction. It is an unacceptable risk to permit a storage firm to select
a subcontractor to provide the records destruction service. The owner of
the records is ultimately responsible for their security and, therefore,
should be selecting the vendor directly. |
| 7.) Internal Personnel
SHOULD NOT Be Responsible To Destroy Certain Information. |
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Common sense dictates that payroll
information and materials that involve labor relations or legal affairs,
should not be entrusted to lower level employees for destruction or
imaging. It has
been well established, time and again, that employees are the most
likely to realize the value of certain information to competitors. And,
lower wage employees often have the economic incentive to capitalize on
their access to it. It was recently learned that a janitor was offered
$500 cash for one trash can from a Microsoft office by a competitor in
the same office building. |
| 8.) Information
Protection Is A Vital Issue To Senior Management |
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In a survey conducted by the Conference
Board, top executives 997 from 300 companies ranked the security
of company records as one of the top five critical issues facing
business.
In the May issue of the "ABA Risk Manager,"
the American Bankers Association recommended banks adopt a
records-disposal policy and to shred all customer records, while making
the policy available to their customers.
Records stored off-site should be stored in a
professionally managed facility that reduces your risks. For medical
records, a Business Associate Agreement is required by Federal Law.
Under Texas law the storage facility that stores protected health
information becomes a Covered Entity as defined by the
HIPAA laws.
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