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FACTA stands for Fair and Accurate Credit Transaction Act. The law went into effect Jan. 1, 2005. FACTA is the law which allows all Americans access to their credit report once per year. So what does that have to do with you?
On June 1, 2005 Cheap Eddie Jackson Jersey , a new provision of FACTA went into effect. It says that any employer (even if you only employ one person) whose action or inaction results in the loss of employee information, can be fined by federal and state government, and sued in civil court. Bet you didn't know that. But you need to know, and need to know what you can do to protect yourself.
Small Businesses will be affected the most.
?A small businessman who makes a mistake could bear the brunt of a regulation like this," says James Plummer Cheap Tarik Cohen Jersey , policy analyst at Consumer Alert, a non-profit group that focuses on a free-market approach to consumer regulations.?br > If you don't shred and information gets out, there are penalties. But what if you do shred all potential employee information, and take all necessary precautions to protect your past, current Cheap Jordan Howard Jersey , and future employees?identities, and the information still gets out somehow? Under FACTA, you could still be held responsible.
You may not think information theft could happen to you, but neither did a lot of companies, universities Cheap Mitchell Trubisky Jersey , government institutions, and businesses that have had employee or customer information stolen from them that have been in the news lately:
Lexis Nexis University of Northern Colorado California State University (Chico) University of California ?Berkeley University of Maryland Las Vegas Department of Motor Vehicles Bank of America Choice Point Weld County (CO) Employees (information stolen by an inmate while in jail)
How can you, as an employer, minimize your liability?
There are hundreds of things you can do to minimize liability, which are probably things you already do. Document shredding Cheap Roquan Smith Jersey , careful screening of employees who will be coming into contact with personal information of customers and employees, physically locking file drawers with sensitive information, and setting up firewalls on computer equipment connected to the Internet, among hundreds of other solutions, are all good ideas.