Enacted in 2003, The Fair and Accurate Credit Transactions Act, or FACTA, requires that all businesses, regardless of size or industry, protect and dispose of sensitive and personal data they collect about their customers.
This rule, which was ordained by the Federal Trade Commission (FTC), doesn’t discriminate based on the size of your business. If you aren’t compliant with FACTA, you’re breaking the law. Are you FACTA compliant? Here’s some questions that you can use to find out.
- Does your company have written policies and procedures in place that detail how documents are maintained and shredded?
- Do you have regularly scheduled shredding occurring on a consistent basis?
- Is document storage and shredding covered in your company handbook?
- Does your business offer regular training in regards to storage and shredding of documents for all personnel?
- Does your company have a disposal plan in place for electronic media? FACTAs rules apply to magnetic media (floppy disks, CDs, DVDs, hard drives, etc.), so all businesses need to include any of these that might contain sensitive and personal information in their shredding management plan.
These questions are some of the guidelines to help your business become FACTA compliant- but it’s just a start. Implement a solid document management plan and take the proper steps to protect your business and your customers.
For current rulings and more information on the Fair and Accurate Credit Transactions Act, please visit the Federal Trade Commission.