The need for proper disposal of consumer information is unquestionable, and has become an even larger concern in the last few years due to the epidemic of identity theft. The FTC has set forth guidelines that call for the destruction of all consumer data that is to be discarded, and a part of these new rules also applies to the hiring of outside paper shredding services.

Although the new rules do not call for specific methods to destroy consumer information, it does require that the methods be effective. Furthermore, all outside contractors that perform shredding must be monitored and checked to verify proper disposal. You can not simply assume that they are effective, you are required to perform due diligence. This may include checking how the disposal company is audited, reviewing their security policy, and securing references.

If your company has small volumes of documents to shred, the purchase of a paper shredder may be in order. Check the daily throughput of the unit to determine your needed size. If large volumes of documents need to be destroyed regularly, then the capital cost of a crosscut paper shredder must be weighed against the cost of a shredding service. For large one time disposals, local shredding services are the best option.

Regardless of which option you choose, you must do your homework. Improper disposal can bring not only identity theft, but also litigation. Do some informational interviewing and get some references. Regardless of whether you shred the paper yourself or contract it out, due diligence and common sense should see you through.