Thursday, June 02, 2005

FTC rule on data destruction

A Washington Post article reports a small, but significant, step towards curbing fraud by impersonation.
A new federal rule that took effect yesterday requires all businesses and individuals to destroy private consumer information obtained from credit bureaus and other information providers in determining whether to grant credit, hire employees or rent an apartment.

Issued under orders from Congress, which was trying to crack down on identity theft, the Federal Trade Commission's new rule requires that personal information be burned, pulverized, shredded or destroyed in such a way that the information cannot be read or reconstructed. The rule also applies to electronic files, which must be erased or destroyed, and covers credit report data, credit scores, employment histories, insurance claims, check-writing histories, residential or tenant history and medical information.

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