The Fair and Accurate Credit Transactions Act was passed in 2003 as a way to update the old Fair Credit Act from the 1970’s. With the dawn of the internet and higher risk online data it became clear that identity theft was more prevalent and upping security was necessary to protect individuals. As FACTA has been in place for well over a decade it doesn’t hurt to brush up and educate yourself on the basics of this act and protecting your customers. One of the toughest challenges financial institutions face is that of destroying records in a way that keeps bank account numbers and social security safe. So what do you need to know to keep customers protected?
1. Financial institutions aren’t just banks. If you have access to consumer credit data such as accounts that allow automatic drafts or the ability to check credit scores you are considered a financial institution and must comply with FACTA regulations.
2. Disposal rules apply to individuals too. Amended disposal rules from 2005 require any business or individual with access to credit reports to follow disposal guidelines. This includes individuals who pull credit reports when hiring for positions like nannies and other in home employees.
3. Shredding includes documents and electronic records. The disposal guidelines include burning or shredding of paper documents as well as electronic data. Extra measures should be taken to eliminate all records from hard drives and any other electronic data storage devices.
At Shred With Us we exceed all safety requirements for shredding documents and electronic data by complying with all regulations as well as going above and beyond regular shredding techniques. Our options for off site or mobile shredding are designed to meet the needs of individuals and larger financial institutions. For more information about proper disposal of documents adhering to FACTA and all other regulations contact Shred With Us today.