Most credit unions keep sensitive personal information in their files–names, Social Security numbers and account data–that identifies customers and employees. When sensitive data falls into the wrong hands, it can lead to fraud and identity theft.
Managing the destruction of customer and employee records is critical to protect information from falling into the wrong hands. Not only can a data breach impose a major inconvenience on members of the credit union and cost thousands of dollars in fines, but it can also diminish a financial institution's reputation and credibility. Bad publicity, legal fees and law suits can cost your business millions of dollars. According to the Ponemon Institute, in 2010, the average cost per breach for a business was $7.2 million, compared to an average per-incident cost of $6.75 million in 2009.
The first step in implementing a document management program is researching and understanding pertinent data privacy and protection laws and regulations. In addition to federal and state laws, depending on industry, businesses may need to comply with other laws such as the Fair Credit Reporting Act, the Fair Accurate Credit Transactions Act, the Sarbanes-Oxley Act and the Payment Credit Industry Data Security Standard.
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