As our society grows increasingly digital, online and financial security is more important than ever. Along with the ease of instant credit card transactions and online banking, comes the risk of security threats to financial statements that contain highly sensitive personal information. In response to this, FACTA was created to better maintain consumer privacy and help ensure that the security of consumer data remains a top priority for any company.
What is FACTA?
The Fair and Accurate Credit Transactions Act of 2003 (FACTA) is an amendment to the Fair Credit Reporting Act. According to the Federal Trade Commission website, FACTA “adds provisions designed to improve the accuracy of consumers’ credit-related records.” Designed to protect against identity theft, FACTA empowers consumers by enabling them to better track changes to their credit with tools like access to one free credit report per year. It further requires financial institutions to look out for possible warnings or “red-flags” and alert consumers of possible fraudulent activity. Additionally, under FACTA regulations, organizations are now required to make reasonable attempts to protect private consumer information through security efforts and disposal of sensitive material – a regulation that affects many modern businesses today.
Consequences of Noncompliance
Failure to comply with FACTA regulations can result in major consequences for your organization. The official government amendment notes that those who fail to uphold FACTA regulations will be held liable for “any actual damages sustained by the consumer as a result of the failure or damages of not less than $100 and not more than $1,000.” These penalties can add up to result in financially debilitating costs for companies and financial institutions involved in class action lawsuits. To avoid involvement in the growing number of lawsuits stemming from negligence in adhering to FACTA regulations, it is imperative that businesses take preventative security measures to protect the assets of their consumers – and by extension – their company assets.
Protecting You and Your Consumers
There’s no room to take chances when it comes to protecting consumer privacy or keeping a company in proper compliance. That is why it is so important for companies to align themselves with a trusted data solutions expert who can set them up with procedures for safe information exchange from receiving and processing, to archiving, to disposing of hard and digital copies of confidential data. Amongst the benefits of working with an expert document management company are: maximum-security data storage, government compliant information destruction, and better organization overall. Working with the right data solutions expert means peace of mind against security breaches through the uploading, storage, transfer, and destruction of consumer information.
Certificate of Destruction
When it comes to the security of hardcopy information, shredding is your best defense against information leaks. Going beyond just paper documents, shredding can include the secure destruction of various types of media and items including CDs, hard drives, uniforms, magnetic media, cardboard, electronics and more. Plus, here’s a tip: Any company looking to securely handle the destruction of consumer information should make sure they are provided with a certificate of destruction. A certificate of destruction is a signed testimonial, documenting the date, time, and by whom the materials were destroyed. This serves as an important legal record of compliance with a responsible retention schedule and your certificate of destruction could help protect your organization against an audit or lawsuit should you ever need to prove that you’ve demonstrated reasonable care for the protection of privacy.
For the utmost in professionalism and peace of mind, seek out top tier companies like URM Technologies that offer qualifications like third-party audits for added safety and mobile-shredding vehicles for precision destruction. To find out more about what you can do to ensure your company is FACTA compliant, contact a URM professional today. Our representatives are happy to assist you with any of your consumer privacy needs.
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