The Hidden Risks of Paper Waste: How Shredding Prevents Identity Theft and Fraud

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Every year, millions of Americans fall victim to identity theft—and a surprising number of these breaches begin with something as simple as discarded paperwork. From old bank statements to employee records, improperly disposed paper documents can become a goldmine for fraudsters.

Federal Laws

This is why both federal and state laws emphasize the need for secure document destruction.

The Federal Privacy Act of 1974 mandates government agencies to protect private data and hold them accountable for unauthorized disclosure. This law reinforces the importance of maintaining confidentiality with any documents containing personal or business information.

State Laws

State-Specific Laws have also evolved to tackle the rising threat of identity theft. Many states now require businesses to adopt secure disposal methods—including shredding—as part of their consumer protection policies.

Why Paper Shreding Matters:

  • Dumpster diving is legal in many states. If someone finds intact personal data in your trash, you could be liable.
  • Class action lawsuits for data breaches are on the rise.
  • Shredding is affordable, effective, and legally prudent.

By implementing a professional shredding routine, you’re not only protecting your customers and employees but also your business reputation and legal standing.


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