What is FACTA?

The Fair and Accurate Credit Transactions Act (FACTA), is a US Federal Law passed in 2003 to protect consumers from identity theft. One of its most important provisions is related to the disposal of sensitive consumer information, which impacts businesses and individuals alike.

Here are some key facts about FACTA:

1. Identity Theft Prevention: FACTA’s primary goal is to reduce identity theft by regulating how consumer information should be handled, stored, and disposed of.
2. Shredding Requirement: FACTA requires businesses and individuals to properly dispose of personal information, such as financial records, credit reports, or any other sensitive documents that may contain a persons private information.
3. Disposal Rule: Under FACTA’s “disposal rule,” companies are required to take reasonable measures to protect consumer information from being accessed or used by identity thieves. This includes securely shredding documents containing sensitive personal data.
4. Penalties for Non-Compliance: If a company fails to to follow the requirements of FACTA, it could face legal financial penalties. The disposal rule helps mitigate the risk of a data breach.

Importance of Shredding:

1. Preventing Identity Theft: Shredding documents is one of the most effective ways to prevent criminals from obtaining personal information like Social Security numbers, bank account details , and credit card numbers. Simply tossing such papers into trash bin can leave you vulnerable to identity theft.
2. Security: Shredding ensures that sensitive information is rendered unreadable. Without this step, even if paper is discarded, someone could easily retrieve it and use it.
3. Compliance with FACTA: For businesses, shredding is a way to ensure compliance with the law. Not only does it protect consumer privacy, but it also reduces the legal risks associated with mishandling sensitive information.

How can MicroShred help make you compliant?
MicroShred offers secure document shredding services that ensure compliance with Federal Law requirements. Using advanced cross-cut shredders, MicroShred guarantees the complete destruction of sensitive documents, making them unreadable and permanently destroyed. Every client receives a Certificate of Destruction as proof that all documents entrusted to MicroShred have been securely destroyed. Additionally, we prioritize sustainability by converting shredded paper into pulp for recycling. As an eco-friendly company, MicroShred promotes recycling, so by choosing our shredding services, you’re also contributing to a greener environment.