Top Ten Reasons for Document Destruction
By Paul McDuffyJun 7, 2009

There are a number of reasons that companies and individuals should consider destroying sensitive documents. Here are just ten reasons why shredding documents can help keep you and your business be safe.

1. Client reassurance. If you destroy all documents containing confidential client information you can let them know that nothing that they ever disclose to you will be exposed to any kind of public scrutiny.

2. Financial security. If your competition was able to get a hold of many of the documents which disclose the financial details of your company's bank accounts it could put you at a serious disadvantage. By sticking to a strict policy of document destruction you eliminate any chance of this happening.

3. Save money. By shredding all documents that you can, you save money on storage costs and filing companies thus maximizing your profits.

4. It's the law. If you have done background checks of any kind, such as investigating criminal records or getting a copy of a credit report on any of your employees, you are legally obligated to destroy those documents.

5. Corporate espionage defense. It may seem strange, but many companies have attempted to cipher out the newest developments of their competition by sending someone dumpster diving. Destroying paperwork ensures there is nothing secret for the competition to discover.

6. Medical information. Any paperwork which contains patient or clinical clients' medical information must be destroyed to protect their privacy.

7. Keep private information private. Bank account numbers, corporate credit cards, and many other financial details are located on many different bills and invoices that your company might have to pay. Destroying all those documents ensures that those numbers stay internal to the company and don't become exposed in any way.

8. Complying with NDAs (non disclosure agreements). Many different lines of business require an NDA be signed between the business and their clients. Destroying a great deal of paperwork is a clear term in many of these types of agreements. If you didn't destroy them after agreeing to in an NDA, you could leave yourself open to a lawsuit for breeching your contract.

9. Protection from identity theft. Identity theft has been one of the fastest rising crimes in the

world. Any business today has to conduct business on the internet, which opens them up to a great deal of identity theft vulnerability. However, by concentrating on that they often ignore the vulnerabilities in their paperwork which can expose them to identity thieves. By shredding, you help to protect your company from being stolen from in this manner.

10. Staying legal. There are more laws than the above which require document destruction.

Law firm clients' files, filled with personal data, dumped on street spark state A.G. probe

BY Veronika Belenkaya
Daily News staff writer

I.D. thief's gold
The state attorney general's office launched an investigation Friday into how a law firm's confidential files were dumped on a Manhattan street.

"We are investing the matter further in a serious way," an official at the attorney general's office said.

"We have approached the firm and we're going to be seeking information from them."

The Daily News found six dumpsters of case files containing tax returns, Social Security numbers, addresses and medical records outside a back entrance to the Frenkel, Lambert, Weiss, Weisman, & Gordon law office on Wednesday May 6.

The files, mostly from the 1990s, were left along the Trinity Place sidewalk, with nothing stopping passersby from digging in.

"They're giving away people's information. They might as well mail it out," said a 62-year-old woman whose Social Security number was found by the News. "I'm agitated."

Richard Lambert, a partner at the the firm, said they had hired a licenced company to get rid of old case files and are now investigating how the private data became street trash.

State officials said depending on severity of the situation, the firm might be fined or have to compensate the clients.

Still, the hardest thing will be finding out who's most affected, said identity theft security expert, Rob Douglas.

"The most difficult ones are going to be the records that may have been stolen. I doubt they [the firm] would have an inventory of everything contained in those files," Douglas said.

Identity Theft Rises During Recession Shredding confidential data is the best way for businesses to stay safe

'Step up security in the recession'
18 Apr 09

Shredding confidential data is the best way for businesses to stay safe from identity fraud, according to experts.


- By
Brian Sims

A recent survey by the Association of Chief Police Officers revealed that £20 billion is lost every year through weaknesses exploited in information security. At the same time, companies House states that between 50 and 100 cases of corporate identity fraud occur every month.

Shred Easy, one of the UK’s biggest confidential data destruction companies, is urging businesses to step up their security during the recession. Jim Watson, the company’s managing director, has this to say on the matter.


Businesses risk losing millions--
“Businesses are risking millions by having no confidential data policy in place. Fraud against businesses is rising and will continue to do so during the recession. Companies which protect themselves now will weather the storm of this increase in fraud.”

Watson continued: “Creating or updating a confidential data policy must be a priority for businesses as we move deeper into recession. It’s not just confidential paper documents that need to be securely destroyed, but also computer hardware such as disk drives and data sticks.”

In conclusion, Watson told SMT Online: “With little knowledge or effort, a fraudster can change the registered office of the business, trading address and even names of directors. Companies with a good trading record are then vulnerable if orders for expensive goods are placed and not paid for.”


Top Ten Tips for companies--
Shred Easy has produced its Top Ten Tips that will help companies to fight business fraud:

create a confidential data policy – if you don’t have one already then you’re in the high risk category for being a victim of data theft

store data safely – don’t assume that bagging it up is the end of the matter… criminals have rich pickings outside business premises where confidential data has been poorly disposed

destroy data properly – shred all confidential data and arrange for a professional company to help store, collect and securely destroy information… and ensure you know where the data is heading

check identities – use credit reference agencies to verify the identity of business customers, suppliers and clients

secure your accounts – don’t allow details of your business banking to escape into the public domain as thieves are well adept at impersonating signatures

inform staff – train your members of staff on how to deal with confidential data properly, and monitor their behaviour… remember that most business fraud is committed by people within the business

keep post(mail) safe – theft of post is a major issue for businesses… scammers may try to redirect your mail without your knowledge

restrict key documents – don’t allow staff to have full access to all your company documents (this applies to paper and digital data)

use anti-virus software – businesses are still being fleeced by online scammers… installing credible anti-virus software is necessary to combat this threat
beware of carrying large amounts of confidential data on laptops, data sticks or mobile devices such as BlackBerrys and iPhones – these gadgets are magnets for thieves who can exploit your confidential information

Do more with fewer resources
In the current economic climate, companies are increasingly being pushed to do more with fewer resources. However, Shred Easy feels that as budgets are cut, many UK businesses may be making themselves more vulnerable to security risks that go hand-in-hand with economic instability.

During the credit crunch, fraudsters are taking advantage of economic confusion and anxiety to target both consumers and businesses. The public sector’s data handling practices have come under intense scrutiny in recent times following a number of highly publicised security breaches.

Robert Guice, senior vice-president of Shred-it in the UK, warns that many UK companies are not learning from these high profile losses. “With all businesses increasingly under pressure to reduce costs during these economically testing times, it seems that many are overlooking the importance of protecting their confidential information and that of their customers, unaware of the hidden costs that can ensue from data breaches,” said Guice.

“If your business is unfortunate enough to suffer a security breach, the real costs associated with the loss will far outweigh any savings made by cutting back on secure data management. The biggest cost comes in the form of irreparable damage to the business’ reputation.”


Research by the Government
Recent research from the Department for Business, Enterprise and Regulatory Reform reveals that the average total cost of a UK company's worst security breach can total between £10,000 and £20,000, with associated costs increasing according to the size of the company. For large businesses (ie those with more than 250 staff), the figure lies between £90,000 and £170,000, and for very large businesses (more than 500 staff), security breaches can cost between £1 million and £2 million.

When incidents become known about externally, the survey revealed damage to reputation could cost large businesses between £30,000 and £250,000.


Outsourced document destruction services
Guice added: “During the downturn, when productivity is paramount, many businesses are reluctant to free up staff time to shred documents, so that they can focus on fee generation, not administration. However, by employing outsourced document destruction services, companies can boost the security of their business’ and customers’ information so they can effectively maintain the trust of their customers, facilitate regulatory compliance and keep their reputation intact.”

In conclusion, Guice stressed: “Even for companies that already handle their data management in-house, cost savings can be achieved through outsourcing their document destruction. We have found that organisations both large and small can achieve a 17% productivity saving when using a professionally-managed document destruction service as compared to shredding in-house.”

Identity Theft Peaks At Tax Time, What to Shred And What To Save

Tax Season Leads to Increased Risk for Identity Theft



Tips for Storing and Destroying Sensitive Documents ITASCA, Ill., Feb. 21 /PRNewswire/ -- Each year consumers spend many hours preparing taxes hoping they don't owe the government money. But what many fail to realize is that the government isn't the only one who may collect their hard earned cash -- so may identity thieves.
In a time where one man's trash is another man's treasure, it's important to ensure that tax-related documents used to prepare taxes are appropriately stored or destroyed. In 2006, consumers lost more than $1.1 billion to criminals who stole their identities. Although this statisticis alarming, there are ways to protect yourself from the crime, especially during tax season.
While it may appear easier to file everything, paper trails are still an identity thief's dream. Recent research conducted by Fellowes, Inc., the leading shredder manufacturer, shows nearly 40 percent of Americans believe identity theft is most likely to occur through online exchanges. In reality, online exchanges represent only 9 percent of the crime. The majority of identity theft crimes occur through paper documents and stolen information, making it crucial to properly store or destroy the sensitive documents used during tax season.
"Tax season can leave consumers with mountains of paperwork, which makes them more vulnerable to identity theft," says Kristen Gehrig, director, global marketing for Fellowes, Inc. "Although shredding is one of the easiest ways to ensure your information doesn't end up in the wrong hands, consumers also need to be conscious about what documents are important to keep."
Simply knowing what needs to be filed or shred will quickly alleviate potential problems.
-- Tax returns: The IRS has three years to challenge information in your return and six years to conduct an audit based on unreported income. Keep tax returns and supporting records, like W-2s and 1099s for at least seven years.
-- Investment statements for taxable accounts: Most brokerage firms and mutual fund companies send annual statements summarizing the year's transactions. Once you have these, you should shred your monthly and/or quarterly statements.
-- Bank statements: Keep statements that back up information on your tax returns for up to seven years. Other bank statements can be shredded after reviewing for errors.
-- Credit card statements: Keep statements for big purchases, like jewelry or large appliances. You might need them for warranties. If you put charitable contributions on your credit card, keep the statement for your tax records. Other monthly statements can be shredded once you've reviewed them for errors or unauthorized purchases.
-- Pay stubs: While many people say to save these, it's a huge mistake. They contain everything an identity thief needs to open an account. Keep three months of history only if you are applying for a mortgage.
-- ATM receipts: Shred all receipts after you balance your bank statement.
-- Canceled checks: With no significance for tax or other purposes, these should be destroyed after one year.
-- Retirement plan contributions: Keep records of contributions to non-deductible individual retirement accounts, such as a Roth IRA, indefinitely. Without them, you may find yourself paying taxes again when the money is withdrawn. Some financial institutions keep records of IRA contributions, but it's best not to count on it.
-- Insurance policies, wills and other legal documents: These documents should be kept indefinitely.
For documents you need to keep, consider storing them in a safe and accessible place, such as a fireproof box that is well hidden in your home. When destroying records, it's best to use a confetti-cut shredder that can slice credit cards and CDs and has confetti-cut capabilities, such as the Fellowes PS-77Cs, which ensures that private information is reduced to small, unidentifiable pieces.
As shredders become a necessary household product, it's important to choose a shredder that not only protects your family's identity, but also its safety. The Fellowes PS-77Cs alleviates shredder safety concerns with its Safe Sense technology, which shuts down the shredder when it senses that hands are too close to the paper opening.
For additional identity theft prevention tips and information on how long to keep financial records, visit http://www.IDconfidence.org or check with your tax professional.

10 Million Americans Hit by Identity Theft
AOL

While everything else is slipping, identity theft is on the rise, jumping to a record 9.9 million victims in 2008, which is up 22% from 2007. Approximately one in 23 U.S. adults became victims, according to Javelin Strategy & Research, who released their fifth annual study today. Total loses increased after three straight years of decline, but the loss per victim fell by 12% to $4,849 from $5,488. The most positive trend is that individuals spent 31% less (an average of $496) to clean up the mess. More than half of victims didn't have to spend anything to clean up after a fraud.
James Van Dyke, president of Javelin told CNN, "Identity fraud has been dropping until last year, boom, there was a turn-up. The only thing we can logically attribute that to is the economy. If people need to make money, and decide to do so illicitly, identity fraud is the logical opportunity."

Improper use of checkbooks and credit or debit cards after a wallet or pocketbook is lost or stolen remains the most common means of identity theft -- 43% of all incidents can be traced to this cause. About 25% of victims had their PINs compromised on ATM cards. Online fraud was the reason for 11% of cases.

So who's most likely to be a victim? People with incomes over $75,000 were more likely to be hit than those with lower earnings. By age, the highest fraud rate is among people between 35 and 44. Ethnically Hispanics were hit the most followed by African-Americans, Caucasians and Asians.

While it wasn't mentioned in CNN's story, I suspect identity fraud is rising because of job scams, where people get an email promising a job; in most cases the person receiving the email never applied for a position. These emails ask for one's key personal information, such as Social Security number and date of birth, and then the fraudster has all he needs to open a new account in your name or make changes to existing accounts.

How can you avoid identify theft?

* Don't give your Social Security number to anyone who calls you unless you do know the caller and were expecting the call. If the caller says they are calling from a company you do business with or from a company where you are applying for a job, ask for a call back number and verify that number is from the company the caller says he or she represents.
* Don't give out any personal identifying information on social networking websites and in chat room discussions. Always be sure to verify the identity of the person asking for the information.
* Keep your sensitive documents secure. A safe deposit box at your bank is your best bet.
* Shred any documents you want to throw out that have your account numbers or other identifying information on them. Shredders today are pretty cheap and a lot cheaper than cleaning up an identity fraud mess.
*Choose hard to guess passwords and pin numbers. Most people use a part of their name or a pet's name. Be more creative. Also, change up your passwords and pin numbers so you don't use the same one with several accounts.

If you do become a victim of identity theft, immediately notify your financial institutions and the three credit bureaus -- Equifax, Experian and TransUnion. The credit bureaus will put a fraud alert on your account. If your checkbook was used or stolen, your bank will recommend you close your account. While I know this could result in a lot of work, especially if you use online bill pay, I strongly suggest you follow their advice. I've been the victim of identity fraud two times in my life, one involving fraudulent checks (police suspected a check ring using checks from a donation I made) and the second involving the loss of my financial records when I mailed them in to a bank while working on a refinance (UPS lost the package). In both cases I had a new bank account the same day I discovered the problem. When I loan package was lost, I changed account numbers for every bank account, investment account and credit card.

The faster you act when you see signs of identity theft, the less work you'll ultimately need to do to clean it up and the less money you'll lose. Since experiencing the check fraud incident I check my bank and credit accounts online everyday for signs of identity theft.

Lita Epstein has written more than 25 books including the "Complete Idiot's Guide to Improving Your Credit Score" and "Surviving a Layoff: A Week-by-Week Guide to Getting Your Life Back Together."

How and Why Allstar Secure Shred Started

As trucking business slows, firm takes on document shredding




BY GARY DYMSKI mailto:gary.dymski@newsday.com?subject=Newsday.com%20Article
10:51 AM EDT, May 7, 2008



For most of the last decade, Massapequa resident Mike Shapiro, owner of Allstar Trucking in Far Rockaway, has watched his client base -- small manufacturers, import-export companies and shops in Manhattan's garment district -- gradually decline. The softening of the business, compounded by a sagging economy and rising fuel prices, Shapiro said, has put a crimp in trucking services on Long Island, where he does about 90 percent of his business.What to do? Expand the trucking company to include secure document shredding, Shapiro decided. "We have the resources," said Shapiro, who recently launched Allstar Secure Shred LLC. "We've been in business for 45 years. . . . It's a natural progression, a way to tweak our business and change with the times."
For the last year the transportation and warehouse industry on Long Island has been flat, said Pearl Kamer, chief economist for the Long Island Association. Citing research by the state Department of Labor, Kamer said the industry has experienced zero job growth in the past year. This no-growth period directly affects wholesale jobs, she said, because that industry largely relies on trucking for goods distribution. A stagnant transportation industry and growing traffic congestion are reasons Long Island lost 300 wholesale jobs last year, Kamer added. Shapiro, 65, said the transition to include on-site shredding was an easy one for his trucking firm, which has a 16,000-square-foot warehouse and a fleet of trucks and trailers. The major investment was a commercial shredder-baler, purchased for about $100,000 from Brothers II Brothers Business Machines in Holbrook. Concerns over identity theft and the passing of the Fair and Accurate Credit Transactions Act in 2003, which provided limits on information sharing and consumer privacy, have helped put document shredding in the public eye. In April, a homeless man searching a lower Manhattan trash can found blueprints -- labeled secure and confidential -- for the Ground Zero Freedom Tower. The shredding business shown some growth. In five years, membership in the National Association for Information Destruction, an Arizona-based trade group, has gone from 175 to more than 1,000, said executive director Robert Johnson. Shapiro is banking that some trucking clients -- which include Dress Barn and Long Island Staples Nu Horizons Electronics Corp. in Melville and NSI International in Farmingdale -- might make the crossover to his shredding service. "We have the trucks, and we think we have their trust already," he says. "We're hoping they take the next step."