Why Shred Your Documents

Identity theft has become a rampant problem in the United States and it is now considered the fastest growing crime in America. In simple terms, identity theft involves a person pretending to be someone else in order to steal money or get other benefits through fraudulent transactions.

While most people are familiar with the term, there are still a lot of common misconceptions about identity theft. The most common is that it is only used in schemes where the main objective is to steal money or obtain counterfeit credit cards.

The truth is, perpetrators of this crime also use social security numbers and personal information to commit utilities, employment, insurance, phone and loan fraud. These activities are more common than stealing a person's money or credit. More than anything else, these crimes involve the theft of information to be used for personal gain and advancement, like getting a cell phone or utilities turned on in a home or business.

Perhaps one of the most startling practices among identity thieves is the use of social security numbers to obtain employment. Authorities report that more and more illegal immigrants are using other people's social security numbers to find jobs. What's worse is they pass out the number to others so a social security number can be used multiple times by many different people before anyone catches on.

Some of the most frequent and unsuspecting victims of identity theft are minors who have yet to enter the workforce. These social security numbers are easier to use without getting caught, since kids don't check credit reports or find themselves in situations where they might be notified by a bank or creditor. When these unsuspecting victims turn 18, they learn someone else has used their personal information, ruined their credit and tarnished their reputation.

This fact alone proves that no one is exempt from the possibility of falling prey to identity theft. You don't have to be independently wealthy or incredibly rich to be a target. You are a potential victim regardless of your age, race, gender or financial status. An identity thief can strike at any time, assume your identity with little or no effort, and wreak total havoc on your life within days. If you become a target, it will take months, maybe even years to reestablish your good name and your credit.

Experts say there are about 10 million victims of identity theft in the U.S. every year, with each case costing the individual an average of $1,500 in damages. Even more, it takes about 600 hours to clean up the aftermath which includes getting new credit cards and licenses issued and explaining to organizations that someone has used your identity without your permission.

Information and identity theft is not just something that affects consumers. The FBI estimates that American businesses assume an estimated total of $24 billion in losses every year because of identity theft. As a result, the government has enacted 40 federal laws that require healthcare facilities, banks, financial institutions and businesses to protect the confidential information of customers and patients.

FACTA, HIPPA and GLB are just three of the many information destruction laws that have been created to protect against identity theft, each requiring the responsible destruction of personal information before it is discarded. FACTA (Fair and Accurate Credit Transaction) mandates that any individual or business that maintains personal consumer information must take reasonable care to protect against unauthorized access to information. HIPAA (The Health Insurance Portability and Accountability Act) is the agency that has set the national standard for protecting private health information. All healthcare providers must carefully guard the confidentiality of patients. GLB (The Gramm-Leach-Bliley Act) requires that financial institutions like banks, credit unions, mortgage, insurance and investment companies keep personal information and social security numbers safe.

There are many different ways to prevent identity theft but destruction of documents is the best way to do it. Shredding documents is the most practical, convenient and cost-effective way for businesses and individuals to protect information. This practice is both quick and easy and highly recommended to both business owners and consumers since identity thieves go "dumpster diving" and retrieve information from items thrown away in the garbage, like old credit card statements or canceled checks. Shredding eliminates documented social security numbers, addresses and personal information that would otherwise end up in your trash.

While businesses obviously have a much higher volume of documents that need to be shredded, individuals should keep a personal shredder at home and shred all documents that contain private information. Bank statements, expense reports, legal documents, budgets and account ledgers are just a few of the many papers that need to be destroyed once they are discarded.

Business owners are encouraged to seek a professional shredding company. There is an organization dedicated to monitoring shredding companies that service businesses in order to ensure quality. The National Association for Information Destruction (NAID) acts as an independent auditor to ensure companies comply with 26 critical shredding areas which include employee background checks and the shred size of important papers. NAID awards their highest rating, "AAA Certified," only to select companies that offer the highest level of information security. These types of shredding companies are the recommended choice for businesses that fall under FACTA, HIPPA, GLB and other information destruction laws.Most people who choose a new york shredding company are not aware that there are major differences between companies in terms of information security, price and customer service. At American Security Shredding, we protect businesses and their customers by providing highly secure, on-site and off-site shredding, to help them comply with HIPAA, GLB and FACTA, as well as all other federal information destruction laws.