The GLBA: Everything You Need to Know
Document shredding is an integral part of all businesses. To save clients from fraud and companies from bad reputations, there are a few federal laws that companies should comply with. One such law is the Gramm-Leach-Bliley Act (GLBA), or the Financial Modernization Act of 1999. According to this law, financial institutions should explain how they handle client information and credentials and how they protect the data from third parties. Shredding services in Houston must comply with this act as well.
The GLBA is enforced by the Federal Trade Commission and includes a Safeguards Rule as well as a Privacy of Consumer Financial Information Rule, among others.
Benefits of the Law
When a company or organization complies with this act, the financial risks are lessened, and there are minimal risks of identity theft or reputational damage. These benefits are achieved through the following:
- All private information is secured, and there are no risks of unauthorized access.
- Users will be strictly monitored, including when accessing data.
- Before sharing personal information between a financial institution and a third party, the client will be notified, and the client holds the right to decline the sharing.
This GLBA compliance ensures document shredding in Houston is secure and will build up a good relationship with clients. Clients get the confidence that their data is in safe hands. Thus, if the company stays loyal to the customers, it will boost the overall revenue.
How Does the Law Work?
The GLBA prohibits companies from disclosing nonpublic personal information to anyone without permission. Data can only be disclosed under certain conditions, such as the nation’s interest or security. This information includes credit and income-related details, social security numbers, bank details, phone numbers, names, addresses, and any other personal information. According to this law, companies should make a written security plan with a call to action for protecting data. This plan should be made keeping in mind the institution’s capacity, work type, operations and complexity:
- They must engage employees in this security plan to coordinate and monitor.
- They must identify and assess risks to customer data.
- They must monitor the program regularly.
- They must evaluate, change or adjust the program according to circumstantial demands.
To stay compliant with this law, shredding services in Houston make sure to destroy papers with complete security. The primary goal is to safeguard and protect confidential data. If you want to hire a company that offers GLBA-compliant document shredding in Houston, call MIDCON Shredding. We abide by all relevant laws and provide efficient data destruction for improved security and to avoid negative consequences for your company.