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Preventing Business Fraud with a Professional Shredding Solution

According to the Federal Trade Commission’s (FTC) annual Consumer Sentinel Report, California ranks seventh among states with the most fraud complaints.  In 2013, there were 40,000 cases of identity theft—more than any other state.  Businesses are easy targets for fraud, given the abundance of personal information handled within a single organization combined with poor information management practices.

Your business is at risk

Identity theft results in the loss of millions of dollars to the economy every year.  In addition to the financial costs to businesses in terms of legal liability and data breach notification, fraud and identity theft also can have a measurable impact on the following:

  • customer trust
  • shareholder confidence
  • brand image
  • employee morale

Your business is just as vulnerable to theft and misuse of sensitive information as the next organization.  Like many companies, you may have placed a high priority on protecting your computer network—a critical step given the high incidences of cyber attacks—but it’s just as important to safeguard your hardcopy information.  Unfortunately, the way you’re disposing of paper documents at the moment may not be providing enough fraud protection for your business.

Revisiting the way you dispose of confidential documents

Shredding machines were once thought to be an effective tool for making sure that corporate information was disposed of in a secure and timely manner.  However, over time, chinks in the armor have been exposed.  A major problem is the time it takes to shred files with a shredding machine.  Take, for example, the steps required just to shred a handful of files:

  • paper clips, staples and sticky notes need to be removed
  • a small number of pages can be shredded at once
  • paper jams have to be remedied
  • shredding receptacle requires emptying
  • shredded material must be transferred to a dumpster

The numerous steps and amount of time it takes to shred confidential records runs counterproductive to the increasing focus on efficiency.  As a result, your staff may avoid using the shredding machine altogether.  This helps explain how highly publicized data breach incidents involving corporate documents found in trash receptacles occur.  Even if shredding machines are used religiously, they still are not likely to shred documents into completely unrecognizable particles.  Most shred paper into strips that can be reconstructed.

Fraud and identity theft risks can be significantly reduced with a professional document shredding service.  The service works by providing shred collection containers that are strategically placed within your office which offers a secure and efficient method for disposing of sensitive records.  Whole files can simply be dropped into the container without the need for removing staples, paper clips, rubber bands, etc.  Once placed in a shred collection container, documents remain securely protected until a professional shredding technician arrives to begin the destruction process.

Based on the volume of shredded material, your destruction provider will implement a schedule for collecting and shredding all confidential material either onsite at your premises or offsite at a shredding plant. Documents should be shredded in accordance with NAID AAA standards. NAID® is the international trade association for companies providing information destruction services. The AAA Certification represents the highest standards accepted by the industry. When a NAID-certified company undergoes an audit, their hiring practices, equipment and facilities are carefully scrutinized. A Certificate of Destruction offered upon completion of the shredding process provides verification that documents have been properly destroyed.

In addition to minimizing business fraud exposure within your organization, professional shredding offers the following benefits:

  • increased employee productivity
  • reduced liability exposure
  • HIPAA, FACTA, SOX, and GLB compliance

Pacific Records Management provides secure shredding solutions for businesses throughout Fresno, Stockton, Sacramento, Modesto, and Napa and Solano Counties.  For more information, please contact us by phone or fill in the form on this page.

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