From the corner garage to global corporations, millions of companies handle billions of documents with sensitive personal information and proprietary secrets. Many of these are paper documents. How your company manages these files can have serious long-term legal and financial consequences. Modern businesses should invest in file shredding.

File Management Protocols

Some companies discard their files with the rubbish. Others purchase tamper resistant filing systems or storage space. These file management protocols are inadequate because they dont prevent unauthorised access. Discarding documents allows targeted and random access to the files. While storing the files may limit access, it does not prevent their misappropriation. To prevent unauthorised access to the documents, a modern business should shred their files.

Business Competitors

The Financial Times recently reported that industrial espionage is a billion dollar plus industry. According to the article, United States intelligence officials estimate that the theft of business ideas and technology cost companies between $100 billion to $250 billion each year. Business competitors sometimes target their rivals to uncover proprietary or operational information such as pricing, product formulations, prospective bids and future strategic plans. Some companies use the information to sabotage their competitors by leaking sensitive files. Shredding files is an important risk management tool.

Credit and Identity Theft

Shredding files prevents credit and identity theft. While many companies use elaborate encryption software to deny access to their online files, they do little to protect their paper files. In 2006, credit card fraud was estimated at 535 million. Credit thieves target poorly secured paper files to steal credit card and banking data. Using a file shredding service prevents access to these documents.

Government Regulations

Governments worldwide are demanding that companies protect the individuals right to privacy. There are serious civil and criminal penalties for non-compliance.

According to the Data Protection Act, if you handle personal information you are legally obligated to safeguard it.

The Health Insurance Portability Accountability Act imposes a $50,000 fine and up to one year in prison for knowingly disclosing individually identifiable health information.

A modern business should shred files to preserve their clients right to privacy.

File Shredding Service Options

Companies can shred on-site, off-site or remotely. On-site shredding service provides the highest security level for your most sensitive documents. The service shreds the files before they are transported. Off-site services transport the document to another location for shredding. This is less secure than on-site shredding because the paper is sometimes sorted for recycling. Remote shredding services transport the files to a remote location for shredding. This option is more secure than off-site shredding because the paper is not sorted for recycling. Shredding files is an important key to safeguarding your business and your clients.