Most companies understand the importance of protecting and eventually destroying confidential data and documents. Yet, you should know that there are standards in place to ensure proper document destruction.
Don’t fail to comply with privacy laws or skipping steps to save time or money. It could end up costing you immeasurably. Well, that’s not exactly true. Consider the annual Ponemon Institute’s “Cost of Data Breach Study” for 2017.
It states the average total cost for a corporate data breach is $3.62 million. This number has actually decreased 10% from the previous year. That’s due to the effects of rapid response. Though, it’s always better to avoid breaches if possible.
The best impetus to meet standards is to understand the cost of improper document shredding. Here’s what could happen if your negligence leads to a breach and identity theft.
Perhaps, documents and the sensitive data they contain are stolen by unscrupulous employees or outsiders. The negative impact could be the same. Your negligence could result in penalties.
These fines are for failure to comply with applicable federal, state, and/or local privacy laws. Also, there are consequences for noncompliance with industry regulations like HIPAA or FACTA, for example.
Let’s give you an idea of possible penalties. A FACTA violation could result in having to pay for actual monetary damages victims of identity theft suffer. It could be anywhere from $100 to $1,000 in statutory damages.
Additionally, there are potential punitive damages (for each and every victim affected). Now, think about what you might spend on a mobile document shredding service. They could protect you from this outcome.
Victims of identity theft due to your negligence are well within their rights to sue. Your company could end up with costly consequences. In fact, you’ll have to pay penalties and actual monetary damages.
Plus, you’ll be responsible for attorney fees for victims before the end. This, in turn, could add up to thousands or even millions of dollars in short order. It depends upon the data stolen.
Loss of Revenue
This is a biggie. You’ll probably have to pay out penalties and reparations in the event of a data breach. However, you stand to start losing revenue in the wake of such a disaster. You could lose loyal patrons, just for starters.
Additionally, you might also lose prospective customers. That’s because they’d be unwilling to provide you with confidential information. You could also lose employees, damaging productivity.
Loss of Reputation
Losing money and customers in the wake of a data breach is pretty bad. Though, the loss of reputation could be a lot more difficult to recover from. You don’t want to lose the trust of your customers, partners, investors, vendors, employees, and more.
That’s because it could spell the end for your enterprise. Luckily, your Florida document shredding company can help you to remain compliant and avoid a breach. Additionally, they’ll protect the best interests of everyone involved.