Facts about FACTA

NEW YORK, NY… August 26, 2005...

The continuing advancement of technology has proven to be a double-edged sword. On one hand, modern society has benefited greatly from the latest and greatest methods of communication, creating an increasing sense of global community. The internet has made businesses accessible to people around the world, and our lives are constantly being enriched by new and exciting forms of education and entertainment.

On the other hand, the technology ascension has brought with it more inconveniences and perils than we can count. People incredibly have less free time now that computers and cell phones have made them into traveling offices. Computer viruses, spam, spyware and everyday technical problems take up countless hours of troubleshooting. And let's not forget the grim reality of identity theft, a crime that has become more common, and much easier to perpetrate, with the assistance of high technology.

Identity theft has become so prevalent, that in December 2003, the U.S. Congress passed the Fair and Accurate Credit Transaction Act, otherwise known as FACTA. This act was passed chiefly due to the fact that there exists an abundance of detailed personal information floating around in corporate databases, file drawers and local hard drives all over the country. In an environment where practically every single transaction and every piece of consumer data is recorded, information can become easy to access once it has been discarded by the entities that obtained it to begin with. And while spam, computer viruses and internet frauds are extremely difficult to locate and control, keeping companies from carelessly tossing out sensitive information in the trash was an issue that had a solution. FACTA, which became effective nationwide on June 1, 2005, is that solution.

With FACTA in place, it is now required that any businesses or individuals that maintain detailed employee or customer records must destroy ALL papers or electronic media that contain any sensitive information before any documents or disks are discarded. Failure to comply with the new law can result in a federal fine of up to $2,500 per violation, and state-imposed fines of up to $1,000 per violation. Furthermore, if identity theft occurs due to failure to comply with FACTA, the entity that disposed of the personal data -- consumer reports, employee records, phone numbers, physical addresses or even email addresses -- could be liable for actual damages incurred.

So how can businesses and individuals with access to personal information maintain compliance with this ruling? There are a few methods of disposal that are generally failsafe, so long as they are followed on a consistent basis:

For paper files, the simplest way to discard sensitive documents is to utilize a crosscut or confetti cut shredder, preferably one with a fine enough cut that it renders reconstruction impossible. Strip cut shredders are relatively useless, and burning, while certainly effective, is an environmentally unfriendly method that may be rather difficult to implement.

For electronic media such as hard drives, floppy disks and CD-ROMs, there are several acceptable methods. The most secure technique is to physically demolish the media. Smashing the platters of a hard drive with a hammer, cutting a floppy disk into small pieces or shattering a CD into bits will render the media unreadable. Disks can also be securely erased utilizing specialized software and procedures recommended by the U.S. Department of Defense.

Lastly, in cases where a great deal of data needs to be obliterated at once, a document destruction specialist may be a good choice. While this admittedly puts the responsibility of the actual demolition in a third party's hands, the majority of these service providers are on the level and can help eliminate a substantial burden from entities that dispose of large quantities of data.

The bottom line? FACTA is here to protect each and every one of us from identity theft, and it is now the responsibility of the businesses that pervade our lives to help keep our personal information from falling into the wrong hands. Thankfully, this can be achieved by consistently following a few simple procedures that are available to everyone.

Kessler International complies with all FACTA requirements, and we never deviate from our commitment to complete client confidentiality. Our customers are never revealed regardless of approach or reason, and we do not publicize our client base for marketing purposes. And of course, any sensitive information that we obtain is either secured or permanently destroyed. Absolute discretion is a commitment our founder made nearly two decades ago, and we have maintained that promise ever since. Now, with FACTA officially on the books, Kessler International is once again showing that we are leading the industry and keeping our clients' best interests in mind.

For more information about Kessler International, contact Michael Kessler at 1-800-932-2221 or visit the Kessler International website at www.investigation.com.