| PHOENIX, AZ – The National Association for Information Destruction, Inc. is commending Georgia Governor Roy Barnes for signing into law new legislation (SB475) which makes it a crime for any business to discard personal information unless it first “shreds, erases, modifies” and makes “reasonably” sure no one will have access to it before it is destroyed. The association, which is the non-profit trade organization of the shredding industry, says the new law is a big step in the right direction with consumers’ welfare as its primary focus.
In earlier comments on the matter, Governor Barnes said, “Records that contain personal information must not be discarded unless the personal information is physically, electronically or otherwise destroyed or made unusable. People need to be able to trust that their personal information is secure and businesses need to be liable if one of their customers becomes a victim of Identity Theft because of poor business practices.”
Georgia currently ranks 9th in Identity Theft cases, according to the Federal Trade Commission.
Robert Johnson, NAID’s executive director says, “There have been regulations and laws on the books for decades, requiring that this information be kept confidential. Georgia’s SB475 differs in that it actually specifies that the information must be destroyed. It also differs in that there are stiff penalties for businesses that do not shred.”
Effective July 1, 2002, any company in Georgia which discards personal information without first destroying it, faces up to $10,000 in fines.
The bill primarily strengthens and broadens the penalties for Identity Theft and related crimes. In recent years, these have skyrocketed to become the fastest-growing and most common form of financial crime in the country. Hundreds of thousands of Americans are victimized by this form of fraud every year with a cost of billions to the economy. It can take victims up to 2 years and thousands of dollars to repair the damage to their credit. The new law requires the shredding of discarded private information because it is one of the most significant sources of the personal data used to establish false identities and fraudulent credit.
In the last decade, shredding services have become the most commonly used method for business and government to destroy discarded sensitive records. Johnson estimates that there are over 500 such firms and claims that the cost-savings and convenience of shredding services are the reason for their overwhelming popularity. NAID currently boasts approximately 250 member companies across the country.
As to the reaction of businesses to the new law and the affect on shredding services, there is a precedent. Wisconsin passed similar legislation in 1999. In the time since, businesses have generally complied with the requirement and shredding services have prospered as a result. The degree to which the law in Wisconsin has impacted Identity Theft has yet to be determined.
NAID does express one concern about the affects of the law. With the increase in demand for shredding services that will result, more companies will form to take advantage of the opportunity. “The information destruction business is unregulated and security procedures can vary considerably,” says Johnson. “NAID’s mission is to educate consumers about the proper disposal of confidential information, including contractor qualifications. We can only hope Georgia businesses are careful to choose shredding vendors that comply with the standards we expect of our members.”
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For more information, contact:
Robert J. Johnson
Executive Director
National Assn. For Information Destruction, Inc.
3420 East Shea Boulevard, 2nd Floor
Phoenix, AZ 85028
Phone: (602) 953-5166
Facsimile: (602) 953-5167
Email: exedir@naidonline.org
Website: www.naidonline.org
Or Visit These Websites of Interest:
http://www.ganet.org/governor/2002_Initiatives/gfla.html
http://www.state.ga.us/services/newleg
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