With identity theft and information fraud at an all-time high, the federal government has enacted over 40 information destruction laws to protect consumers. Here’s a synopsis of the three most significant pieces of consumer information protection legislation:
The Fair and Accurate Credit Transaction Act (FACTA) requires that any individual or business that maintains personal consumer information must take reasonable care to protect against unauthorized access to this information, and they must also destroy personal consumer information before it is discarded. Violation of FACTA, which went into effect in 2005, can mean fines and penalties of up to $2,500 for each consumer record compromised.
For more information about FACTA, click here.
– FACTA Red Flags Rule – most businesses must adhere (click here to learn more)
The Health Insurance Portability and Accountability Act (HIPAA) sets national standards for the protection of personal health information. HIPAA, which went into effect in 1996, requires all healthcare providers, including any organization that transmits personal health information, to maintain the confidentiality of this information and to destroy the information before it is discarded. Business Associate Agreements (BAA) are required for all covered entities as of January 25, 2013.
For more information about BA Agreements, click here.
The Gramm-Leach-Bliley Act requires that all financial institutions protect the confidential information of their clients. Banks, credit unions, mortgage companies, investment and financial services firms, and insurance underwriters are among those affected. Fines for violating GLB can be severe. American United Mortgage Company was fined $50,000 for violating GLB.
For more information about GLB, click here.
Total Security Breaches Nationwide Tops 300 Million!
Think a security breach can’t happen to your organization? Think again! Since they began tracking security breaches in January 2005, privacyrights.org reports that over 218 million confidential files, in every imaginable industry, have been compromised! For a comprehensive list of these information security breaches, click here.