The Law

Statistics on Identity Theft 

A national survey conducted by the Better Business Bureau reported that within a 12-month period, 9.3 million Americans were victims of Identity Theft, resulting in losses of $52.6 billion.  Through the survey, it was discovered that most thieves still obtain personal information through traditional, rather than electronic, channels.  In cases where the method could be determined, 68.2% of information was obtained off-line versus only
11.6% obtained on-line.  A study authorized by the Federal Trade Commission agrees with the survey, stating that personal data is usually stolen in offline ways – such as dumpster diving – with only about 12% of the cases being a result of the Internet.

Confidential document destruction is a legislative-driven business designed to protect businesses and consumers.

In light of these statistics, both State and Federal government have enforced the enactment of laws designed to protect the privacy of businesses and individuals:

• HIPAA (Health Insurance Portability and Accountability Act) requires the establishment of national standards for electronic health care transactions and national identifiers for providers, health insurance plans, and employers.  The Administration Simplification provisions also address the security and privacy of health data.
  New Amendment: HITECH/HIPAA
• PHI (Protected Health Information) is used within HIPAA to describe the type of information that must never be seen by unauthorized individuals.
• FACTA (Fair and Accurate Credit Transactions Act) calls for the proper disposal of information in consumer reports and records to protect against unauthorized access to or use of the information.
  New Requirements: FACTA Red Flags Rule
• The “Safeguards Rule” of the Gramm-Leach-Bliley Act requires all financial institutions to design, implement and maintain safeguards to protect customer information. The Rule applies not only to financial institutions that collect information from their own customers, but also to financial institutions – such as credit reporting agencies – that receive customer information from other financial institutions.
• Privacy Act of 1974 establishes a code of fair information practice that governs the collection, maintenance, use, and dissemination of personally identifiable information about individuals that is maintained in systems of records by federal agencies.
• Economic Espionage Act of 1996 makes the theft or misappropriation of a trade secret a federal crime. Unlike Espionage, the offense involves commercial information, not classified or national defense information.
• California Assembly Bill 2246 requires businesses to cease printing Social Security numbers on health plan and employer identification cards, as well as other kinds of IDs. It also forbids the future printing of Social Security numbers on bank statements and other documents sent by mail, and allows people to freeze access to their credit reports.
• California vs. Greenwood 1988 was a case in which the Supreme Court of the United States held that the Fourth Amendment does not prohibit the warrantless search and seizure of garbage left for collection outside the cartilage of a home. Dumpster diving is not illegal.