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How to Comply with HIPAA / GDPR / FACTA / SOX in Regards to Document Destruction?

Document Destruction | Paper Shredding Blog
Document Destruction

The businesses now deal with large volumes of confidential information, such as patient medical histories and consumer credit reports and records. Things to do when the need of such documents is over is not to dispose of the documents by merely throwing them away. Document destruction in a secure way is a legal provision of significant regulations like HIPAA, GDPR, FACTA and SOX.

A non-compliance may result in lawsuits, regulatory fines, or customer trust lost forever. This article defines what all of these laws mandate, best practices in making a destruction that complies and how professional services such as ShredInstead can assist.

What Does Document Destruction Mean?

Document destruction is defined as the act of destroying records in such a manner so that the information contained in them is unreadable, incoherent and unassemblable.

  • Paper records: Cross cut shredding, pulping, burning or incineration.
  • Digital media: Surprisingly, drives and devices should be destroyed by overwriting, physically shredding or melting.
  • The aim of all the regulations is the same, the sensitive information must be destroyed entirely to ensure it does not end up in the wrong hands.

HIPAA: Health Information Privacy

HIPAA regulates the manner in which healthcare institutions and their affiliates deal with protected health information (PHI).

Documents destruction requirements under HIPAA:

  • Paper PHI should be destroyed by shredding, burning or in any other way that would not allow them to be reassembled.
  • Electronic PHI should be wiped out or the storage medium physically destroyed.
  • The workers dealing with PHI should be constantly trained on how to properly dispose.
  • Organizations should have policies and audit trails on the manner and time of PHI destruction.

Retention: HIPAA does not mandate the duration of time the medical records should be maintained; this is a matter of state law. After retention requirements, records have to be destroyed in a way that is HIPAA-compliant.

GDPR: European Union Data Protection

The GDPR is applicable to all businesses involved in the processing of the personal data of EU residents, regardless of the location of the business.

Important GDPR requirements on document destruction:

  • Storage limitation principle: The storage of personal data should not exceed the period of time during which it is intended to be used.
  • Right to Erasure (also known as Right to be Forgotten): Persons may demand the removal of their personal information, and companies have to comply unless they have a legal justification to store such information.
  • Techniques of destruction: Documents are to be shredded or burnt; computer files are also to be wiped out or destroyed.
  • Responsibility: Companies should have documented records and policies that show that they have deleted or destroyed personal information when it is necessary.

FACTA: Protecting Consumer Information

The FACTA ( Fair and Accurate Credit Transactions Act) contains a Disposal Rule that seeks to curb identity theft.

What does it require?

  • Any company utilizing consumer reports (such as banks, landlords, or employers) should destroy their records in a manner that no one is able to read or recreate the information.
  • The methods that are approved are shredding, burning or crushing paper; erasing and destroying electronic files and media.
  • When outsourcing the destruction, the companies should ensure that the third-party suppliers are using secure practices and offer destruction certificates.

SOX: Corporate Accountability

The Sarbanes-Oxley Act (SOX) is aimed at financial transparency of corporations, although it affects document destruction.

SOX requirements include:

  • Audit and financial records should be kept at least seven years.
  • Records that are relevant to an investigation, audit, or litigation cannot be destroyed by the companies.
  • Internal controls should establish schedules of retention, destruction procedures, and establish audit trails.

Best Practices for Compliant Document Destruction

Given that regulations are different, the common set of practices should be followed by the businesses to embrace all the requirements.

1. Develop Document Retention and Destruction Policy.

  • Establish the retention period of various documentations.
  • Procedures to destroy paper and electronic media.
  • Handling of legal holds to avoid early destruction.

2. Destroy in a Correct Way.

  • Paper cross cut shredding
  • Hard drives and USBs can be degaussed or physically shredded.
  • Trustworthy wiping programs of computer files.

3. Collaborate with Qualified Suppliers.

  • Professional shredding firms offer shredding locked containers, on-site shredding, or off-site shredding, and shredding destruction certificates.

4. Train Employees Regularly

The employees are to be aware of recognizing sensitive records, when they may be destroyed and in what ways.

5. Maintain Documentation

  • Write records of what, when, who and how destroyed.
  • Keep the certificates of destruction to be audited.

6. Audit and Review

Audit the policies and providers on a regular basis to ensure compliance with HIPAA, GDPR, FACTA, and SOX.

Common Mistakes to Avoid

  • Just deleting files without wiping up.
  • Disregarding the backup or archived data of sensitive information.
  • Shredding documents prematurely- before they are legally or retention policy due.
  • Shredding services of third-party companies that have not been verified.
  • Missing to train staff and resulting in noncompliance unintentionally.

How ShredInstead Supports Compliance?

ShredInstead is a secure document destruction company that fulfills HIPAA, GDPR, FACTA, and SOX requirements. Services include:

  • Off-site and on-site shredding.
  • Assure boxes and consoles on document collection.
  • hard drive destruction, destruction of media.
  • Audit defense certificates of destruction.
  • Procedures that are confidential, legal and peaceful.

In collaboration with ShredInstead, an organization will minimize its risk and align its destruction procedures with all key data privacy and security laws

Conclusion

Destruction of documents is not only good practice, but the law. The HIPAA ensures that medical records are properly disposed of, the GDPR mandates that personal data are erased, the FACTA protects consumer reports, and finally, the SOX requires that financial records are strictly maintained and destroyed.

Through sound policies, certified destruction, staff training and collaboration with a reputable shredding company, companies can remain in compliance and guard their sensitive information.

The easiest mechanism of minimizing risks, preventing penalties and saving the face of the organization is through safe document destruction.

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FACTA,HIPAA,HIPAA / GDPR / FACTA / SOX,SOX
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