What is FACTA?

FACTA is the Fair and Accurate Credit Transaction Act established in 2003 which was created to protect consumers from the growing crime of identity theft and consumer fraud.   It applies to virtually every individual or business who maintains or otherwise possesses consumer information for business purposes.  The law states that all information must be properly disposed of by taking reasonable measures to protect against unauthorized access or use of the information in connection with its disposal.

Acceptable reasonable measures are defined as burning, pulverizing or shredding of paper containing consumer information or entering into a contract with a third party vendor in the service of record destruction in a manner consistent with this rule.

Violation Penalties

State and federal governments are authorized to bring enforcement actions for violations of disposal rules.  In cases involving multiple violations, such statutory penalties can add up to very large sums of money.  Class action law suits are also very possible when large numbers of consumers are affected.  In addition to statutory damages, courts often award punitive damages to the victims as well as reasonable attorneys’ fees.

As your partner in regulatory compliance, InfoShield Security will satisfy all FACTA regulations keeping you and your clients safe.