The protection of personal information from identity theft is a fast growing concern for every business in every industry. What exactly is identity theft? According to the Federal Trade Commission (FTC), it is when "someone uses your personal Information such as your name, social security number, credit card number or other identifying information, without your permission to commit fraud or other crimes." It is the fastest growing crime in the U.S. with 9 799 new victims every hour. According to the FTC, 3.25 million people had their identity stolen in 2003 - a 40% increase from 2002 - with a total cost to businesses and consumers of more than $83 billion. It often takes up to a year for an individual to "clear" their name when it becomes stolen and costs several thousand dollars in the process.

The Supreme Court (California vs. Greenwood) has ruled that materials placed in a dumpster are public domain and therefore anyone may rummage through your trash. "Dumpster diving" is not illegal.

The government has stepped in to enact legislation to ensure that private information remains protected and reduce the chances of identity theft. The two dominant regulations are HIPAA and Gramm Leach-Bliley (also known as the Financial Modernization Act / GLB). Each of these regulations have provisions on how to properly handle and dispose of paper documents. In June of 2005 The FTC has implemented the Fair and Accurate Credit Transactions Act (FACTA) that amends the Fair Credit Reporting Act. This legislation requires companies that have personal consumer information to take reasonable measures to protect it.

As you know there are many methods of paper destruction, but by far the most popular is document shredding. Many companies have set up shredding processes within their organizations simply by placing personal shredders at each person's desk or implementing departmental shredders. This does accomplish the goal of shredding documents but is it truly effective?

Small machines are just not up to the task to shredding large amounts of documents and require the user to prep the documents) such as removing staples, paper clips and removing contents from file folders). Specialized companies have come on the scene such as ShredTech and Shred It to provide reliable, secure document shredding out-source services. Typically document collection bins are placed throughout an office so employees can conveniently throw away sensitive documents to be shredded at a later date. On a scheduled basis the document shredding company will clear out the contents of the collection bin, shred the materials, then have them recycled. Shredding can occur either in a self contained mobile shredding truck in the parking lot, or back at the shredding company's plant. Either way, a certificate of destruction is issued that represents the materials were securely shredded. Ensure that you receive a certificate of destruction each time they visit your facility to perform this service.

Many organizations are required to retain documents for years and therefore required to store the documents. At yearly intervals a large clean out or purge is required to destroy those archived materials. Again, this service can be performed on-site with a mobile shredding truck or back at the shredding company's plant. Depending on mobile or plant shredding, a reputable shredding company can shred between three to ten tons of paper per hour and it handles staples, paper clips, binders, even whole phone books. When working with a shredding company, there are several checks to ensure that they are reputable:

* Ask for (and check) references;

* Membership in NAID (National Association of Information Destruction www.naidonline.org);

* Insured for HIPAA and GLB compliance;

* NAID certifications;

* Written descriptions of security measures;

* Type of shredding performed (cross cut vs. strip cut);

* Mobile or off-site options;

* For employees: uniforms, background checks, drug testing.

From large, multinational law firms to single practitioner medical offices, the requirement to protect personal consumer information is as important as protecting their computer servers. Companies no longer have to work in the dark to set up and implement a document destruction system. Many professional organizations now exist to solve these problems. Ensure that professional destruction of materials is a standard in the work place and your home. The next time you go to your doctor, banker or lawyer ask them how do they dispose their records before they are discarded to be sure your information is not being put at risk.