Tips: Safeguard Sensitive Information

September 18, 2007

Every day, corporations deal with confidential information containing everything from company trade secrets and marketing research, to social security numbers and addresses of employees, customers and vendors. Recent news headlines about dumpster diving and stolen laptops, however, have shown that the release of any kind of proprietary information can have disastrous consequences for businesses.

In the last two years alone, 85 percent of businesses have experienced a data breach involving the loss or theft of customer, consumer or employee data. In that same period of time, more than 150 million records have been exposed. The financial implications stemming from the theft of proprietary information in the workplace are startling, as the crime cost U.S. businesses and consumers $56.6 billion in 2005. On average, data losses cost companies $182 per compromised record in 2006, an increase of 31 percent from 2005.

"With an ongoing exchange of paper in offices, the workplace is an increasingly desirable target for identity thieves," said Ira Winkler, national security consultant and author of best-selling "Through the Eyes of the Enemy" and the recent "Zen and the Art of Information Security." "Small businesses are particularly at risk because they don't always have the resources to protect their information. Protecting your data is protecting your business. No matter how big or small the business, you must ensure that the proper policies are in place to protect sensitive data."

Financial implications are only a portion of the consequences, as businesses can now face penalties, such as fines and lawsuits, if they neglect to properly store and destroy sensitive information. Federal laws like the Fair and Accurate Credit Transactions Act (FACTA), Health Insurance Portability and Accountability Act (HIPAA) and Gramm-Leach-Bliley Act (GLB) require businesses of all sizes to properly manage and dispose of consumer and patient information. In some states, lawmakers have begun to hold employers responsible for protecting employees' information, making it vital for businesses to comply with these guidelines.

A first step toward safeguarding corporate data is to shred anything that contains sensitive information. While some companies utilize off-site shredding services to destroy information, on-site shredding offers the convenience and a greater sense of security in knowing that information is destroyed immediately. A deskside shredder is ideal for business professionals that regularly handle sensitive information including legal, accounting, human resource or finance personnel. Commercial shredders are best for shared use spaces including shared printing or copying areas where large volumes of sensitive information are created.

Businesses should look for personal or commercial shredders that destroy CDs/DVDs, can handle large volumes of paper and feature cross-cut versus strip-cut capabilities, ensuring all private information is destroyed into small, unidentifiable pieces.

"It is essential that businesses incorporate shredders into their office environment and proactively encourage employees to shred all of their confidential information," said Nancy Heaton, senior global marketing manager for Fellowes Inc. "Shredding with a cross-cut machine on-site is one of the easiest ways to guarantee that private information can't get in the hands of identity thieves."

Shredding is just one of many ways to safeguard sensitive information. Businesses should consider implementing the following precautions to help minimize their risk of identity theft:
Develop office guidelines for all employees that outlines the proper procedures for protecting sensitive information.
Keep all sensitive information and files locked away. Restrict access to those who need it and closely watch your files.
Work with your company's IT department to limit the access employees have to electronic files. All files should be password protected and encrypted.
Ensure all company computers have the most up-to-date anti-virus, anti-spyware and firewall software. Also check to make sure wireless networks are protected with the proper security settings.
Limit the use of social security numbers in the workplace. Don't use social security numbers on items such as employee identification badges, time cards or paychecks.
Conduct thorough background checks on potential employees. It is not uncommon for confidential information to be stolen from within.
Use a locked mailbox to send mail that contains personal or company checks, social security numbers or account information.
At the end of each work day, all employees should log off their computers and lock their workstations or office doors. All confidential documents should be filed away rather than left at one's desk.
When traveling for business, employees should pay attention to their surroundings, especially when using a cell phone, laptop or BlackBerry. For those who frequently utilize hotel business centers, check to see if they have shredders on-site and never throw away confidential information.

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