Top Ten Reasons for Document Destruction

By: Paul McDuffy

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. Save money. By shredding all documents that you can, you save money on storage costs and filing companies thus maximizing your profits.
3. 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.
4. 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.
5. Medical information. Any paperwork which contains patient or clinical clients' medical information must be destroyed to protect their privacy.
6. 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.
7. 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.
8. 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.
9. 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 licensed 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'
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:

1. 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.

2. 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.

3. 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

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

5. 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.

6. 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.

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

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

9. Use anti-virus software – businesses are still being fleeced by online scammers… installing credible anti-virus software is necessary to combat this threat

10. 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.

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.”

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.

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 organizations both large and small can achieve a 17% productivity saving when using a professionally-managed document destruction service as compared to shredding in-house.”