Joining the shredding game (USA TODAY -2008)
If you do a credit check on your nanny before you hire her — or you get private
information from a nanny service that came originally from a credit report — you
fall under the rules.
The disposal provision goes into effect June 1. By then, all businesses — whether
employing one worker or 1 million — will have to join the shredding game.
"It's going to have a very big upside for people selling small shredders," says
Johnson. "A lot of companies that did not comply in the past were the medium-
and smaller-sized companies. They were busy running their business or felt they
were flying below the radar screen. But now they'll have to comply. Every
employer is covered, even individuals."
FACTA is just one of many recent laws aimed at protecting consumer and
company privacy, including medical records, credit information and corporate
trade secrets.
If you don't shred and information gets out, there are penalties, according to NAID
(National Association of Information Destruction).
•Civil liability. An employee could be entitled to recover actual damages
sustained if his or her identity is stolen as a result of your inaction. Or you could
have to pay statutory damages of up to $1,000 per employee.
•Class-action lawsuits. If large numbers of employees are affected, they may be
able to bring class-action suits and get punitive damages from employers.
•Federal fines. The federal government could fine you up to $2,500 for each
violation.
•State fines. States can fine up to $1,000 for each violation.
If you do a credit check on your nanny before you hire her — or you get private
information from a nanny service that came originally from a credit report — you
fall under the rules.
The disposal provision goes into effect June 1. By then, all businesses — whether
employing one worker or 1 million — will have to join the shredding game.
"It's going to have a very big upside for people selling small shredders," says
Johnson. "A lot of companies that did not comply in the past were the medium-
and smaller-sized companies. They were busy running their business or felt they
were flying below the radar screen. But now they'll have to comply. Every
employer is covered, even individuals."
FACTA is just one of many recent laws aimed at protecting consumer and
company privacy, including medical records, credit information and corporate
trade secrets.
If you don't shred and information gets out, there are penalties, according to NAID
(National Association of Information Destruction).
•Civil liability. An employee could be entitled to recover actual damages
sustained if his or her identity is stolen as a result of your inaction. Or you could
have to pay statutory damages of up to $1,000 per employee.
•Class-action lawsuits. If large numbers of employees are affected, they may be
able to bring class-action suits and get punitive damages from employers.
•Federal fines. The federal government could fine you up to $2,500 for each
violation.
•State fines. States can fine up to $1,000 for each violation.
Yvonne Evans & Associates
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The Internet is an essential resource, but trying to find those great
sites can be a frustrating experience. To save you time, we've
compiled a list of Websites that might be of interest to you.
Free credit reports web site and phone number,
shared by Equifax, Experian and TransUnion:
http://www.annualcreditreport.com or call 877-322-8228
Federal Trade Commission general information:
http://www.ftc.gov
PRC information on specialty consumer reports:
CLUE (insurance):
http://www.privacyrights.org/fs/fs26-CLUE.htm
MIB (medical):
http://www.mib.com/html/request_your_record.html
Employment background checks:
http://www.intellius.com
DATA LOSS Calculator for companies to calculate loss.
Network security to prevent data leaks.
Federal Trade Commission
Link to information, forms, resources
Kroll, Inc.International risk management company with 60+ offices
worldwide, serving corporations, businesses and individuals.
U.S Justice Dept. Helps answer your questions.
National Network of State and City Directories.
sites can be a frustrating experience. To save you time, we've
compiled a list of Websites that might be of interest to you.
Free credit reports web site and phone number,
shared by Equifax, Experian and TransUnion:
http://www.annualcreditreport.com or call 877-322-8228
Federal Trade Commission general information:
http://www.ftc.gov
PRC information on specialty consumer reports:
CLUE (insurance):
http://www.privacyrights.org/fs/fs26-CLUE.htm
MIB (medical):
http://www.mib.com/html/request_your_record.html
Employment background checks:
http://www.intellius.com
DATA LOSS Calculator for companies to calculate loss.
Network security to prevent data leaks.
Federal Trade Commission
Link to information, forms, resources
Kroll, Inc.International risk management company with 60+ offices
worldwide, serving corporations, businesses and individuals.
U.S Justice Dept. Helps answer your questions.
National Network of State and City Directories.