Client files from the Prudential Patterson Realtors firm in Hazelwood, Missouri turned up in the dumpster yesterday. Three boxes of records were discovered behind a condominium by a resident. They alerted fox2 news of the problem.
Another case of someone not doing their document shredding and trying to hide the information in another dumpster.
Shred Nations, a leading provider of shredding services, announces that it has passed the 100,000 customer mark. “It is quite a milestone for us,” said Steven Hastert, General Manager. “It is good to know that all of that private information has been protected and that paper recycled.”
Operating from its headquarters in Southwest Denver, Shred Nations offers a nationwide shredding service. The company leverages a network of more than 500 shredding locations across the United States to provide service. The company founders began with a Denver shredding service in 1980 and launched the Shred Nations network for national customers in 2003.
Shred Nations has achieved double digit growth each of the last 7 years. “Shredding services are always growing, but the types of service is evolving,” says Hastert. 2010 was notable for the high number of requests to shred at closing and downsizing businesses. Now he says more requests are for companies that have been piling up boxes in empty offices and need the space. There is also an increase in businesses taking another look at their document destruction policies. “You can’t just let documents pile up,” says Hastert. “Identity thieves often work with insiders to take unguarded information.”
Shred Nations has also seen a rise in the number of homes needing shredding done. “I think a number of people know they need to shred but tend to let it pile up instead of buying a shredder.” To offer a solution for these smaller shredding jobs Shred Nations provides an online service called Ship ‘n’ Shred. The service focuses on convenient home shredding.
The company plans to launch two new shredding services in the summer. “The market keeps evolving and so does Shred Nations,” says Hastert. They plan to increase share of both the individuals and large corporation market.
North Carolina Attorney General, Roy Cooper has announced a settlement with NACA for failing to shredding mortgage documents of their clients. The files were discovered last April and reported to Channel 9. The news report led to an investigation by the Attorney General. The company must pay a $3,000 fine and notify the customer’s whose documents were not shredded.
This follows yesterdays post that non-compliance is much more expensive than compliance. The only way to be sure is to shred everything in the office. In the end it was failing to shred the files of seven people that cost the company $3,000.
There is no doubt that the companies are required to spend money on privacy compliance. Privacy laws like Sarbanes-Oxely, FACTA, HIPAA and HITECH require careful control and destruction of personal information. Ponemon Research puts the cost of compliance at $3.5 million for the 46 businesses they studied.
The obvious alternative is do simply ignore the laws and hope you avoid detection. But that might not be the best bet. A recent study says that non-compliance would have cost the same 46 businesses $9.4 million. The costs comer from productivity losses, business disruption, fines, and penalties.
Many people live but the motto “It’s easier to ask forgiveness than it is to get permission.” When it comes to privacy compliance this study would say the opposite.