Data Destruction for Financial Institutions

Financial institutions (including all businesses that collect information from consumer credit reports) face stringent oversight when it comes to securing sensitive consumer data.  From GLB Safeguards to FTC Disposal Rules, the standards that regulate data destruction for financial institutions require organizations to use great caution when retiring legacy equipment.

Data Destruction Financial Institutions dollar bill

The best way to remain compliant is to partner with an expert hard drive destruction and IT asset recycling firm.  If you’re uncertain of the answers to these questions, then it’s time to have a conversation with our experts on data destruction for financial institutions.

  • Are you questioning whether you’re compliant with data destruction regulations?
  • Is your organization governed by GLB Safeguards or FTC Disposal Rules?
  • Do you have a process in place for securely disposing confidential consumer data?

What Are The GLB Safeguards & FTC Disposal Rules?

The Gramm-Leach-Bliley (GLB) Act establishes regulations for how financial institutions must handle confidential information.  As a part of its implementation, the Federal Trade Commission (FTC) enacted actionable Safeguards and Disposal Rules.  The FTC states:

Any person who maintains or otherwise possesses consumer information for a business purpose must properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal.

The GLB Safeguards and FTC Disposal Rules outline best practices relating to data destruction for financial institutions, including:

  • Designating a manager to supervise the disposal of records.
  • Conducting due diligence when hiring a third-party vendor, including requiring that the company be certified by a recognized industry organization.
  • Destroying or erasing data prior to disposing of equipment – including computers, hard drives, data storage devices, and other hardware.

Ultimately, a key element of your overall digital security strategy is your plan for what you do with information when it’s no longer needed.  At E-Waste Security, we partner with financial institutions to ensure data is completely and securely destroyed – protecting our clients from the liability of data breaches.

Which Businesses Are Considered Financial Institutions?

When it comes to data security regulations, the term “financial institutions” goes beyond the type of organizations we’d generally classify in that way.  Of course, banks and investment firms come to mind – but, in this context, financial institutions include any organization who accesses or stores information from consumer credit reports.  Here are some examples of businesses that must comply with GLB Safeguards & FTC Disposal Rules:

  • ATM Operators
  • Auto Dealerships (who assist with financing)
  • Check-Cashing Businesses
  • Courier Services
  • Credit Reporting Agencies
  • Mortgage Brokers
  • Nonbank Lenders
  • Payday Lenders
  • Personal Property or Real Estate Appraisers
  • Professional Tax Preparers

Explore Our Secure, Compliant, End-to-End Auditable Processes

At E-Waste Security, we provide the most secure options when it comes to data destruction for financial institutions.  Our certified hard drive destruction and IT asset disposition company provides trusted service to large and small companies throughout Los Angeles, Orange County, and Santa Clara County.  Our onsite data destruction and hard drive shredding service is NAID Certified and compliant with the GLB Act, FTC Disposal Rules, PCI DSS, and HIPAA.  We provide full-service IT Asset Disposition (ITAD) services including the purchase, removal, and recycling of computer equipment to provide our clients with a convenient solution for their decommissioning projects.

Our Services Include: