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Fair and Accurate Credit Transations Act (FACTA)

The “Fair and Accurate Credit Transactions Act” (FACTA) was made into law in June 1, 2005. The law is designed to protect employees and prevent personal information and identities from being stolen. This law applies to anyone who employs one or more people. The FACTA law is the biggest ID protection law to be signed into law since HIPAA (Health Insurance Portability and Accountability Act of 1996).
Fair and Accurate Credit Transations Act (FACTA) informationFair and Accurate Credit Transations Act (FACTA)
High Security Paper Shredder, DOD Paper Shredders
The “Fair and Accurate Credit Transactions Act” (FACTA) was made into law in June 1, 2005. The law is designed to protect employees and prevent personal information and identities from being stolen. This law applies to anyone who employs one or more people. The FACTA law is the biggest ID protection law to be signed into law since HIPAA (Health Insurance Portability and Accountability Act of 1996).

Employees to do not destroy or shred sensitive employee information could result in legal action or government fines. State and civil laws award up to $1,000 in fines per violation and the federal government can award up to $2,500 per violation. It is very important that employers follow this law. Failure to do so could be costly.

ID Theft is one of the fastest growing crimes in the United States. By law, garbage is considered unprotected and can be legally subject to dumpster divers and thieves. As a result, employers cannot throw employee information in the garbage. The new law is applicable to all employers, no matter how many people are employed. This applies to cleaners, nannies and yard workers.

One of the most efficient ways to destroy personal information is to shred it. Strip cut shredders are traditionally more popular, due to the fact that they have been around longer. Cross cut shredders, due to the added security, are quickly outpacing strip cut shredders in sales. The quarter-inch strips that strip cut shredders, although hard to read, can still be reassembled. Cross cut shredders, also known as confetti cut shredders, make it very difficult to piece information back together.

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