Paper Shredders—Saving America’s Businesses One Cut at a Time
By: Jeremiah Fowler

If you run a business with even one employee and you don’t have a paper shredder, you should. If you’re wondering why, then you’re likely not compliant with the Fair and Accurate Credit Transaction Act (FACTA) and you could be in big trouble

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So what does a federal law that applies to consumers and their credit reports have to do with your business and why does it mean you need a paper shredder?

Passed in December of 2003 and updated in 2005, FACTA stipulates that if you collect the personal information of an employee, you need to destroy that information before throwing it away. That literally means “shredding or burning” of paper materials and “smashing or wiping” of computer disks containing this information.

Even though FACTA calls for the destruction of materials with information derived from a consumer credit report, the Federal Trade Commission expands the scope to include personal identifiers. Such information—in addition to Social Security numbers—would include a driver’s license number, telephone number, physical address and e-mail address.

The intention behind FACTA is to thwart identity theft, one of the fastest growing crimes in the United States. Non-compliance with the new regulations could mean civil liability, class-action lawsuits, federal fines and state fines.

Cross-Cut Shredders and Strip-Cut Shredders Can Make the Difference
Does the news sound gruesome for your business? Fear not, manufacturers around the world are developing high-tech paper shredders to solve this problem.
The two basic types of paper shredders to choose from are cross-cut shredders and strip-cut shredders.

Cross-cut shredders cut paper in lengthwise and widthwise pieces, virtually disintegrating any of your employee’s personnel information efficiently. Strip-cut shredders, on the other hand, cut lengthwise paper strips. This does an above average job of securing the document’s information, but certainly offers users high efficiency in their shredding.

Either choice almost completely eliminates a criminal’s ability to fit the pieces back together. Therefore, paper shredders are the most effective way to dispose of documents and personnel information.

You’ll find shredding equipment available in small or large sizes, heavy duty industrial or light office varieties and with multiple speeds and prices.