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Volume 10, Issue 4

BU

YE 20 RS 13 ISS ’ G UE UID E

July / August 2013

Security Shredding Storage

Visit us online at www.securityshreddingnews.com

ATTENTION: READERS !

Are you looking for Products, Equipment or Services for your business? If so, please check out these leading companies advertised in this issue: Collection & Storage Containers Big Dog Shred Bins – 15 Bomac Carts - pg 16 Jake, Connor & Crew – pg 14 Equipment Financing TransLease Inc – pg 14

Equipment Focus:

Data Destruction Tools

Insurance Downstream Data – pg 12 Lock & Locking Systems Lock America Intl. – pg 13

For electronics processors, the devices they handle, the assurances they provide, and their processing goal— reuse or recycling—all can factor into the selection of data destruction tools.

Mobile Truck Shredders Alpine Shredders Ltd – pg 17 Shred-Tech Limited – pg 12 Vecoplan LLC – pg 5 Moving Floor System HALLCO Industries, Inc – pg 16 Keith Manufacturing – pg 14

K

Stationary Shredders & Grinders Allegheny Shredders – pg 13 Schutte-Buffalo Hammer Mill, LLC – pg 2 Shred-Tech Limited – pg 12 UNTHA America – pg 20 Vecoplan LLC – pg 5 Trade Associations MSA - Mobile Shredding Association – pg 16 Waste Commodity Purchasers Commodity Resource & Environmental – pg 15 Dan-Mar Components – pg 17 Web Design NetGain SEO – pg 15

By Diana Mota

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Mentor, OH PRSRT STD Permit No. 2 U.S. Postage

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eeping up with technology is like keeping up with the Joneses.

It’s challenging, more so for electronics recyclers who handle data storage devices, from computer hard disks to portable flash drives and everything in between.

They need to understand how to process the devices to maximize their reuse or commodity value, but they also must comply with the data destruction assurances they give their clients.

And as data storage media evolve, so too must the equipment and methods for destroying or erasing them. Simply following a manufacturer’s reset directions might work for some newer devices.

But such measures on other digital devices do little to remove sensitive data, says Craig Boswell, president of Hobi International (Batavia, Ill.), an information technology and mobile asset disposition company.

The lack of a single, industrywide standard further complicates matters, several data destruction equipment manufacturers say.

Some processors select their equipment based on the requirements of certification programs such as R2/RIOS or the AAA program of the National Association for Information Destruction (Phoenix). Others use guidelines from the U.S. Department of Defense (Arlington, Va.) and National Institute of Standards and Technology (Gaithersburg, Md.), says the vice president of technology and sales for a data sanitization solutions firm in New England. Often, deciding which process or tool to use is “more of a business question than a security question,” he says. Some clients are conservative and request destruction of everything, even requiring data destruction before

the device leaves their facility, says Scott Venhaus of Arrow Electronics (Englewood, Colo.). The recycler’s business plan plays a role as well: Does the company plan to refurbish and sell the product or its parts or process it for its scrap commodity value? Either way, not keeping up with changes to data storage designs and destruction needs could have serious repercussions for recyclers and their customers. When choosing a data destruction solution, recyclers need to consider the types of devices they’re handling, the data location and storage media, the cost of destruction compared with the product’s value (whether resale or scrap), and—most important—the repercussions of an unintended release of data, says the vice president of marketing and strategic accounts with another New England data destruction equipment company.

Continued on page 3

Inside This Issue

12 Dumped Microfiche Sheets Expose 277,000 Patient Records

15 Naid Opens Ssd Research Study to Applicants Through September

16 Whistleblower Suit Settlement Reached on Shred Size Noncompliance

18 Congress Looks to Ban Dumping of US E-waste

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11/3/11 10:34 AM

Security Shredding & Storage News

Equipment Focus: Data Destruction Tools Continued from page 1

PUBLICATION STAFF Publisher / Editor Rick Downing

Contributing Editors / Writers Diana Mota Sandy Woodthorpe

Production / Layout Barb Fontanelle Christine Pavelka

Advertising Sales Rick Downing

Subscription / Circulation Donna Downing

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For subscription information, please call 440-257-6453 Security Shredding & Storage News (ISSN #1549-8654) is published bimonthly by Downing & Associates.

Reproductions or transmission of Security Shredding & Storage News, in whole or in part, without written permission of the publisher is prohibited.

Annual subscription rate U.S. is $19.95. Outside of the U.S. add $10.00 ($29.95). Contact our main office, or mail-in the subscription form with payment. ©Copyright 2013 by Downing & Associates.

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Most data destruction tools take one of three approaches: They destroy the data-storage medium by shredding, crushing, punching, or bending it; they subject magnetic media such as hard drives or data tapes to a high-strength magnetic field designed to eradicate the data and destroy the device, a process called degaussing; or they overwrite or erase the data in a process called data sanitization. Recyclers can choose one method or a combination, the technology vice president says. “Any one of these methods is perfectly viable as a standalone measure for protecting data, but they all have their own meaningful business applications.”

Going to Pieces

P

hysical destruction techniques render the electronic device unusable or reduce the storage media to a particle size that makes it impossible to retrieve information. To destroy unclassified data on hard drives, “all you have to do to be compliant” with NAID recommendations “is disfigure the storage media, which really means the platters on which the data is stored,” the technology vice president says. “If you bend it, put a hole in it, warp it, or fold it, you’ve physically destroyed the media and rendered data inaccessible to an adequate degree.”

Hard drive manufacturers recommend shredding their products to pieces about 1.5 inches wide, he says.

Though that particle size suits most applications, some shredders produce 3/4-inch or even 3/8-inch pieces, he says. But the particle size doesn’t really matter, says a sales and marketing representative of a data destruction equipment maker in the Midwest. For standard hard drives, “1.5-inch shred width isn’t any less secure than 3/4-inch shred width,” he explains, because “the technology to retrieve data off of fragmented pieces of hard drive is costly, and the process is time consuming.” Instead, he says, “It’s about perception.

You’re appealing to the customer. If they think a smaller shred size is more secure, and they demand it, then we have it for them.” Destruction of U.S. Department of Defense (Washington, D.C.) data classified as secret or top secret must meet stricter requirements, which often require degaussing followed by physical destruction, this sales rep says. Using multiple techniques “basically eliminates any singular point of failure,” the technology vice president explains. The federal government doesn’t define what it considers physical destruction, the vice president of marketing points out. “In theory, if I degaussed a hard drive using an NSA-approved degausser, I could then throw it against the wall” and meet the physical destruction requirements. “However, most people look for a piece of equipment to actively destroy it.” Equipment for physical destruction tends to fall into the following categories: Shredders. Manufacturers offer a wide range of small, mobile shredders designed for hard drives and other media, such as portable flash drives, reel-to-reel or back-up tapes, and mobile phones, the sales rep says. These machines cut input material— including metal hard disk drives—into narrow strips that range from 0.75 inch to 1.5 inches wide and lengths that vary at random. Their mobility gives

recyclers the flexibility to shred at a customer’s site for greater security, but the technology vice president cautions that mobile doesn’t mean light: The smallest shredders available commercially weigh about 1,300 pounds and move on heavy-duty casters. “You’re not going to throw it in the back of a Volkswagen, but you don’t need a full 58-foot truck,” he says. More robust, but still mobile, machines weigh up to 7,500 pounds.

These larger shredders can be installed in trucks. “One company paid for all of its equipment with one stop” with such a shredding truck, the sales rep recalls.

Recyclers that handle low volumes of material for destruction can start with a single-phase, 1-hp system, which can shred about 180 hard drives an hour using 220-volt electric power. At the other end of the spectrum are high-volume shredders that offer 20-hp, three-phase power (208, 230, or 460 volt) that can shred up to 3,500 hard drives an hour, the sales rep says. For example, his company manufactures three different series of hard-drive shredders for a total of six models, he says. Machines in a single series have the same footprint but vary in horsepower and shred width.

A low-volume model might suit someone starting out in the business or offering data destruction as a new service at an existing scrap processing operation, the sales rep says. “On the back end, they can take the shredded product and recycle it further.” But such equipment has certain limitations, says the technology vice president: They’re good for hard drives and magnetic tape, but not much else. “If you’re going to do any real volume—such as a few hundred hard drives an hour—you’re going to need three-phase power, which will require a generator for mobile operations.”

Shears. Hydraulic shears are another option for destroying low volumes of data-storage devices, the sales rep says. “They offer flexibility and are a good option for someone who might already offer on-site document shredding.” A shear can process up to 24 hard drives at a time and cut them into pieces ranging from a half-inch to 2.5 inches wide, he says. “Those with a lot more volume … would probably want a shredder.”

C r u s h e r s / B e n de r s / Destroyers. Various pieces of equipment twist, break, or otherwise mangle desktop, laptop, and server hard disks. One firm’s machine can destroy drives up to 2 inches high in a 10-second crush cycle.

An automatic crusher delivers 12,000 pounds of force using a conical, hardened steel punch to render drives up to 1.85 inches high and 9 inches deep inoperable in 8 seconds. A similar manual crusher delivers 6,000 pounds of force in 5 seconds. Many of these tools are mobile for on-site data destruction. They’re not as popular as shredders, says the technology vice president. “Crushers are compliant with NAID standards, but a lot of folks just don’t see them as adequate in their own mind. For that reason, we end up selling more hard drive shredders.” They are a great solution for clients that require degaussing and physical destruction, however, one sales rep says.

Disintegrators. A disintegrator is a mill with both stationary and rotary knives that cut material continuously until it’s small enough to pass

Continued on page 4

Security Shredding & Storage News. July / August 2013

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Security Shredding & Storage News

Equipment Focus: Data Destruction Tools Continued from page 3

through a screen. An air evacuation system typically moves the sized material to a downstream system for sorting or disposal. Manufacturers have designed various disintegrator models specifically for light-volume mixed media such as solid-state drives (those in mobile phones, tablets, and certain laptops), optical media such as

Solving the Solid-State Storage Puzzle

M

ost smartphones and tablets, some laptop computers, and those ubiquitous “thumb drive” portable flash drives use solid-state storage devices, or SSDs. As this type of data storage becomes more affordable, several electronic recyclers and data destruction equipment manufacturers say they expect it to replace standard hard drives in all computing devices. “There’s no reason for hard drives to stick around,” says a sales and marketing representative of a data destruction equipment maker in the Midwest, because SSDs use less energy and can hold more data. How SSDs store data makes them a challenge for recyclers, however, leaving the e-scrap recycling industry scrambling to find new approaches to destroying the devices or sanitizing them for reuse.

If SSDs are improperly destroyed, it’s easy to take a device apart and pull data from it, says the vice president of technology and sales for a data sanitization solutions firm in New England. Two of the three common approaches to data destruction—degaussing and data sanitization—do little to help, the sales representative says. And some physical destruction techniques that work on other media might not get the job done. “You could take a hand drill and drill a hole through a hard drive, and that’s just as destroyed as if the drive were in a thousand pieces,” explains the technology vice president.

But an SSD stores data on small chips with no set pattern or size, the sales rep says. “Each chip has to be destroyed, and you don’t quite know where those chips are on the board.”

Before the existence of SSDs, if a shredder “could handle a hard drive, it could pretty much handle anything,” the technology vice president says, making it a good multipurpose tool for an electronics recycler. An SSD is made primarily of plastic and printed circuitboards, so it’s not difficult to shred, but it has to be reduced to a much smaller particle size than a standard hard drive shredder can achieve, the sales rep says. Systems that can do that include disintegrators, hammermills, and electric grinders.

It’s difficult to design a single tool that works well to destroy both hard drives and SSDs, these manufacturers say. “You would need the combination of power, to handle a hard drive, and small enough shred width, to handle SSDs—or two pieces of equipment,” the technology vice president says. His company recently introduced a shredder that cuts sharply enough to destroy SSDs, but with a $60,000 price tag, many electronics recyclers will find the cost prohibitive. Unless a recycler has high throughput, such as 1,000 units an hour, it could be more cost-effective to purchase a shredder for hard drives and a hammermill, he says. “You could get a hard drive shredder for $14,000 and a hammermill for $9,000 ... but neither of those low-cost units will do near the volume” of larger machines.

Another company recently developed an attachment for its crushing machine for SSDs, he says. It has closely spaced spikes on the top and bottom “that poke tons and tons of holes that effectively destroy each storage module on the SSD.” At about $7,000, the price might be attractive, but he wonders whether standards being developed for SSD destruction will accept that approach.

The National Association for Information Destruction (Phoenix) is developing a tool to validate the erasure of solid-state memory, says Jade Lee, president and CEO of Supply-Chain Services (Lombard, Ill.). The federal government is looking at the issue as well, says the vice president of marketing and strategic accounts with a New England data destruction equipment company. It currently recommends reducing these items to a particle size of 2 by 2 mm. Until a better alternative arrives in the market, “we automatically shred SSDs,” Lee says.

4 Security Shredding & Storage News. July / August 2013

DVDs and CDs, portable flash drives, memory chips, and mobile phones. Particle size can range from several centimeters to just a few millimeters. The National Security Agency (Fort Meade, Md.) recommends taking optical disks such as CDs and DVDs down to particle sizes of 2.2 by 4 mm, “just a little bit larger than a grain of sand,” says the vice president of marketing. “At 6 mm, not even the world’s most capable IT professionals could piece data back together,” says the technology vice president.

The systems come as standalone units for tabletop mounting, cabinet-mounted units, or field kits. One company’s five-blade models, which range from 10 to 25 hp, have throughputs ranging from 250 to 1,300 pounds an hour when processing material to a 3/32-inch particle size. With larger particle sizes, throughputs would even be higher, the sales rep says. Seven-blade, 15- to 30-hp models can process between 500 and 1,800 pounds an hour. The company’s 1- to 3-hp, light-volume, mixed-media “office” disintegrators can process 100 to 150 pounds an hour.

Hammermills. Hammermills for data destruction are smaller versions of what the scrap industry would use to process an automobile. Hammers attached to a high-speed rotating shaft repeatedly strike material dropped inside the unit.

That impact, as well as collisions with the walls of the unit, beat up the material until it breaks into pieces small enough to pass through a screen. Heavy materials exit the mill by their own force while lighter materials require pneumatic suction. A low-volume hammermill can process a few hundred solid-state drives an hour, but the sales rep doesn’t recommend it for hard drives because of the amount of force needed to break them. “You would need a medium-volume or above machine.” A 30- to 40-hp mill weighing more than 2,600 pounds can reduce the average hard drive to pieces smaller than 3/4 inch, for example. As with automobile shredders, downstream separation equipment can sort the processed material using a variety of technologies. Machines range from 2 to 100 hp and throughputs of 50 to 3,000 pounds an hour.

Magnetic Wipeout

D

egaussers use permanent fixed magnets or electromagnetic technology to render data unrecoverable on magnetic storage media such as hard disks, magnetic tape, or floppy disks. The technology vice president warns that degaussing is “not a solution for most data storage media” used today because it’s only designed for data that are magnetically recorded. Degaussing is more effective than shredding for tape media, he explains, and the process still exists because it’s included in U.S. government guidelines for destruction of classified data. To qualify to handle such data, however, the NSA must evaluate the degausser and add it to its Evaluated Products List. It’s a costly and time consuming certification process, one sales rep says.

The effectiveness of degaussing depends on exposure time to the magnet and the thickness of the disk, says the marketing vice president. Some degaussers are only strong enough for tape. A low-end hard drive degausser can process one drive at a time in about 60 seconds; a high-speed degausser processes about six drives in 10 seconds. Though the process renders it unusable, a hard drive appears unchanged after it’s degaussed. “You can’t tell by looking at it. It just doesn’t work anymore, and there’s no data on the drive,” the technology vice president says.

With the move toward solid-state drives, or SSDs, he believes degaussers are on their way out. “We’re doing a lot less degausser sale business because it doesn’t offer a complete solution for the media that are out there. It does nothing to [erase or sanitize] data on solid state drives,” the technology vice president points out.

(For more on the challenges posed by solid-state storage media, read “Solving the Solid-State Storage Puzzle” on page 120.) But if that’s not a concern, a degausser could appeal to facilities that want to offer a basic level of electronics collection and data destruction. “It’s about half as much to buy a similar quality degausser as a shredder,” he points out.

Software Solutions

D

ata sanitization software can destroy data at a much lower cost than physical destruction or degaussing, and, in contrast to those techniques, it does not destroy the equipment, making resale an option. Sanitization software also can be used before physical destruction, says the vice president of business development for a Texas-based data erasure equipment and service provider. “It’s cheaper to employ some type of erasure than to bring a shredder on site” for clients who want data destruction while the equipment is on their property, he explains. It Continued on next page

Security Shredding & Storage News Continued from previous page

On mobile devices, often the goal of data sanitization is to erase only personal takes longer to wipe data from a device than to degauss or shred it, but it can be costdata, not the operating system, to produce a functional device for resale, Boswell effective to erase devices with high resale value, he says. There’s no practical limit to says. Off-the-shelf software solutions based on the device’s operating system—iOS, how many times you can rewrite over a device, says a solutions and support specialist Android, or Windows Mobile, for example—are available for the more popular for a data erasure company based in Finland. The phones and can probably remove personal data device “will likely wear out before that happens.” from 95 percent of the phones a recycler is likely Several companies have developed software “Either way, not keeping up with to encounter, Boswell says. One firm says its packages to erase data on rewriteable devices such Windows-based software supports all major mobile as hard drives, mobile phones, portable flash drives, changes to data storage designs device platforms and can erase up to 20 phones secure digital memory cards, and virtual machines. simultaneously, for example. Boswell notes that and destruction needs could Each device requires different software, the support some software solutions don’t address purchased have serious repercussions for specialist says. For a hard disk, for example, the games, however. “Those we delete manually.” Hobi software must overwrite every sector of the drive, recyclers and their customers.” uses manual data sanitization solutions for less says Corey Dehmey, assistant to the executive director popular phones with less value; for some higher of R2 Solutions (Boulder, Colo.). That certification value devices, such as iPhones, the manufacturers body recommends writing over the device three times: with a series of ones, then have effective reset procedures, he says. “Typically, you can tell by how long it zeros, and finally randomly generated ones and zeros. The business development vice takes. If it takes three seconds, there’s no way it erased 20 gigabytes. But if it takes president questions the need for writing over a hard disk more than once, however.

15 minutes, then maybe it did.”

The precision and accuracy of modern drives allow for complete data erasure in one Software programs should provide reports that verify erasure and note errors, pass, he asserts. That said, DOD and NIST specifications require multiple passes, manufacturers say. Electronics recyclers also should have a verification sampling says Jade Lee, president and CEO of electronics recycler Supply-Chain Services, or method and should not use the same software or person who wiped the data to verify SSI (Lombard, Ill.). SSI sets 3-wipe passes as its default, she says. it’s erased, Dehmey says. “It’s a two-person job. To verify, you match up serial The time it takes to sanitize storage media varies. The more capacity in a drive, numbers with the log and then take data recovery software and scan the media to the longer it takes to overwrite the data, Lee says. Sanitization time also depends see if you can recover anything.” The Device Renewal Forum (Costa Mesa, Calif.) on the number of overwrite passes and the condition of the host system, says the recently developed data wipe certification standards for wireless phones, though it business development vice president. Each pass extends the length of time for is making the standard available only to its members. sanitizing, but a general rule of thumb is one hour per pass for every 200 gigabytes, Before investing in data destruction equipment or processes, the technology vice says the technology vice president. Depending on the product, users might be able president suggests talking with those who produce and sell such products. “There to install the software on a standard personal computer, a dedicated host system, or are so many different nuances to data destruction; it really depends on what business a networked device. Software firms even sell appliances or hubs designed to hold model the recyclers want to get into.” multiple loose hard drives, mobile phones, flash drives, or SD memory cards. One company, for example, offers data erasure tool kits that perform up to 160 erasures Diana Mota is associate editor of Scrap. This article originally appeared in the May/ at the same time at the customer’s site or at the recycling facility.

Jun 2013 issue of Scrap magazine (www.scrap.org). Reprinted with permission.

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Security Shredding Storage News

2013 Buyers Guide Directory CATEGORY LISTINGS

Baler Manufacturers

Advanced Equipment Sales American Baler Co BACE Balemaster USA Harris International Baler Corp IPS Balers Mfg J.V. Manufacturing, Inc Maren Engineering Corp Van Dyk Recycling

Solutions Waste Processing

Equipment, Inc

Baling Wire & Strapping Systems

Accent Wire Cavert Wire Company, Inc Coastal Wire Co Eastern Wire Products LP Wire-Tie Wire Industries LLC

Business Consultants, Employment Services & Drug Screening A Matter of Fact ADS Consulting Crawford Thomas iiX Independent Drug Testing Supply, Inc Inquirehire K-2 Partners, LLC Lane-Link Group, Inc Merit Profiles Background Screening Shotgun Capital Advisors LLC

Conveyors & Moving Floor Systems

The C.S. Bell Co Cresswood Shredding Machinery HALLCO Industries, Inc Hustler Conveyor Co Jorgensen Conveyors, Inc KEITH Mfg Co Recycling Equipment Manufacturing, Inc

Document Storage Containers / Collection Carts

Big Dog Shred Bins USA Bomac Carts Jake, Connor & Crew Inc MOD - Meese Orbitron Dunne Co Schaefer Systems Intl

Dust Control Systems Advanced Equipment Sales Imperial Systems, Inc Nordfab Ducting Ohio Blow Pipe

Electronics Recyclers

BCS Clover Environmental Solutions Dan-Mar Components MRP Co., Inc QML, Inc. SMS Assembly, Inc

Fire Protection Systems, Vaults & Fire Prevention Services

Advanced Equipment Sales Critical Systems Fire Protection Intl Consortium Firelock Fireproof Modular Vaults FLAMEX, Inc

Insurance Providers

Aegis Insurance Services Arroyo Insurance

Services Downstream Data

Coverage EMPLOYERS LaPorte & Associates

Leasing Companies

Intek Truck & Equipment Leasing Trans Lease, Inc

Marketing, Advertising, Website Development & Online Services Artwork Advertising & Design Chachka Group NetGain Shred Truck Outpost

Merger & Acquisition Firms

K-2 Partners, LLC Lane-Link Group, Inc Shotgun Capital

Advisors LLC Waterfront Capital, Inc

Rack Storage Systems

DACS, Inc Elite Storage Solutions Interlake Mecalux The Invicta Group Morrison Company SpaceRAK Summit Metal Products, Inc

Repair Services (Balers & Shredders)

CMB Commercial

Shredder Repair, LLC Himes Service Co Pacific Coast Shredder Repair Co

Routing, Billing & Inventory Software DHS Worldwide Software Solutions DocuData Software eRouteIt RouteOptix Inc

Security Locks & Alarm Systems

Babaco Alarm Systems Lock America

International The Wilson Bohannan Lock Co

Security, Safety, Loss Prevention & Risk Management Specialists

360° Asset Protection, Inc Baker Security Group, LLC

Shred Truck Manufacturers & Dealers Alpine Shredders Limited AXO Shredders Shred-Tech Shredfast, Inc ShredSupply Shred Truck Outpost UltraShred LLC Vecoplan LLC

Shredder Manufacturers (Plant-based)

Advanced Equipment Sales Allegheny Shredders Ameri-Shred Corp American Pulverizer Co Cresswood Shredding Machinery Cumberland Recycling Jordan Reduction

Solutions Republic Machine Schutte-Buffalo Hammer Mill, LLC Security Engineered Machinery Co Shred-Tech UNTHA America Vecoplan LLC WEIMA America, Inc

Shredder Wear Parts

Dun-Rite Tooling ShredSupply Tryco Manufacturing Co

X-ray Film Recycling & Processing

Arch Enterprises, Inc Commodity Resource & Environmental Inc Pyromet

Security Shredding & Storage News. July / August 2013

7

2013 Buyers Guide Company index

A

Arch Enterprises, Inc Mexico, MO (800) 835-0478 www.archenterprises.com

360° Asset Protection, Inc Cumming, GA (404) 618-0198 www.360ap.com A Matter of Fact Colfax, CA (800) 957-3272 www.amof.info Accent Wire Tomball, TX (281) 255-0700 www.accentwire.com ADS Consulting Carrollton, GA (877) 5 ASK ADS www.askads.net

Arroyo Insurance Services Los Angeles, CA (323) 550.7900 www.arroyoins.com Allegheny Shredders PO Box 80 Delmont, PA 15626 (800) 245-2497, (724) 468-4300 solutions@alleghenyshredders.com Tens of thousands of customers worldwide, including the majority of contract shredding services, are enjoying the benefits of Allegheny’s superior equipment and affordable prices.

Allegheny is the only company manufacturing an entire line of destruction equipment – High Capacity Shredders, Cross-Shredding Systems, Security Grinders, Product, Plastics and E-scrap Shredders, Horizontal Balers, and Complete Shredding Systems. See ad on pg 13

Artwork Advertising & Design Jesup, GA (912) 427-0589 www.artworks-ads.com AXO Shredders Philadelphia, PA (484) 953-3580 www.axo.cc

B

Big Dog Shred Bins USA 8774 Almond Road Lakeside, CA 92040 (855) 792-4050 info@bigdogshredbins.com www.bigdogshredbins.com When it comes to document bins and secure paper collection carts for your shredding company, document destruction companies have told us that they are looking for 2 things: quality and affordability. Big Dog Shred Bins USA is here to help you grow by providing you with quality shredding containers and shred carts at an affordable cost. See ad on pg 15

Babaco Alarm Systems Moonachie, NJ (800) 283-2222 www.babaco.com BACE Charlotte, NC (877) 506-2223 www.bacecorp.com

Advanced Equipment Sales 535 Hagey Road Souderton, PA 18964 (215) 723-7200 Jeff Dietterich, President aesjeff@aesales.net www.aesales.net AES - Advanced Equipment Sales - is the leading provider of integrated baling and shredding systems for mobile and plant-based secure destruction. Each AES system includes expert project management, installation, start-up, and training, with 24/7 service availability. Products include balers, shredders, conveyors, plus our NEW, LOWER COST Dust Control System.

Aegis Insurance Services Alpharetta, GA (800) 582-6270 www.aegis-online.com

ATTENTION Readers!

Schedule your 4-color logo/photo listing in our 2014 Buyers’ Guide Issue!

Cost is only $195, and your listing will reach over 5,500 industry businesses.

To purchase a listing, call 440-257-6453.

Balemaster USA Crown Point, IN (219) 663-4525 www.balemaster.com

Alpine Shredders Limited 30 Alpine Ct Kitchener, ON N2E 2M7 Canada (866) 246-5634 Guy Wakutz, Sales GWakutz@AlpineShredders.com Five Simple Reasons You Should Choose Alpine Shredders. We know the decision to purchase a piece of equipment is a difficult one. If you want the best value, the lowest cost of ownership and the simplest piece of equipment - you want the Alpine Advantage. Here is why: Ease of Use; Efficiency; Performance; Lower Operating Cost; Innovation. See ad on pg 17 Ameri-Shred Corp Alpena, MI (800) 634.8981 www.ameri-shred.com American Baler Co Bellevue, OH (800) 843-7512 www.americanbaler.com American Pulverzier Co St. Louis, MO (314) 781-6100 www.ampulverizer.com

8 Security Shredding & Storage News. July / August 2013

Baker Security Group, LLC PO Box 10279 State College, PA 16805 (814) 321-3102 Brian Baker brianbakercpp@comcast.net www.bakersecuritygroup.com Baker Security Group, LLC, is an independent securit y management consultanc y and Pennsylvania licensed professional investigation firm. We help our clients to solve problems and prevent future problems through careful assessment and individualized solutions. Our services focus on the prevention of loss and the reduction of risk through the use of the best practices in the security industry.

Bomac Carts 201 Badger Parkway Darien, WI 53114 (262) 882-5000 Cindy Lapidakis sales@bomaccarts.com www.bomaccarts.com Heavy-Duty utility carts are our specialty. From Recycling, Manufacturing, Shipping/Receiving, Commercial Laundry and Mailrooms, our offering meets a broad range of uses in many industries. See ad on pg 16

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The C.S. Bell Co Tiffin, OH (888) 958-6381 www.csbellco.com Cavert Wire Company, Inc Rural Hall, NC (800) 969-2601 www.cavertwire.com

BCS Canoga Park, CA (888) 286-7188 www.scrapdr.com

Register Online Today! www.SSMWEXPO.com

2013 Buyers Guide Chachka Group 459 NW Adler St Madras, OR 97741 (541) 475.7286 chachka@chachkagroup.com www.chachkagroup.com Chachka is a unique collection of artists, writers, designers, photographers and programmers who transform everyday advertising into something special. Sometimes amusing.

Sometimes thoughtful. Always effective.

Clover Environmental Solutions Hoffman Estates, IL (815) 431-8100 www.clovertech.com CMB Commercial Shredder Repair, LLC Fuquay-Varina, NC (919) 577-6714

www.cmbcommercialshredderrepair.com

Coastal Wire Co Georgetown, SC (800) 768-9473 www.coastalwire.com

Commodity Resource & Environmental Inc 116 E. Prospect Ave Burbank, CA 91502 (818) 843-2811 Stacy Aesoph saesoph@creweb.com www.creweb.com Commodity Resource & Environmental (CRE) is celebrating their 33rd anniversary as one of the world’s leading silver recovery companies.

In just three decades, CRE has become the biggest “above-ground miners” in the Western U.S., harvesting silver from photographic and other by-products — over 15,000,000 pounds worth every year! See ad on pg 15 Crawford Thomas Orlando, FL (888) 649-6616 www.crawfordthomas.com

Cresswood Shredding Machinery 55 W. Lincoln Hwy Cortland, IL 60112 (800) 962-7302, (815) 758-7171 Jim Abuhl, Vice President, Sales info@cresswood.com www.cresswood.com Cresswood designs, manufactures, and installs the “DESTROYER” line of versatile single-shaft, low-RPM Shredders / Grinders and complete systems for plant-based secure destruction and storage operations, and the recycling of managed materials. Customer support programs include: factory-direct service teams; rapid parts availability; personnel training; and specialty equipment development.

Critical Systems Louisville, KY (502) 231-2402 www.critical-systems.net

Cumberland Recycling 2900 S. 160th St New Berlin, WI 53151 (262) 641-8600 John Farney, National Sales Mgr cumberlandweb@corpemail.com www.cumberland-plastics.com Since 1939, Cumberland has remained a recognized leader in the supply of size reduction technology to the ever changing polymeric industries. Holding true to our roots, we continually strive to bring the best products and solutions to the marketplace, while retaining a focus on safety, quality, and value.

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DACS, Inc Portsmouth, VA (757) 393-0704 www.dacsinc.com

Dan-Mar Components 150 W. Industry Ct Deer Park, NY 11729 (631) 242-8877 Sylvia Martini smartini@dan-mar.com www.dan-mar.com Dan-Mar Components has been providing our valued partners with personalized service and custom solutions to help them to manage their overstock, excess or obsolete assets for over 20 years. The combination of industry experience, knowledge and flexibility that we have acquired allows us to cater to the needs of organizations of multiple sizes.

See ad on pg 17

DHS Worldwide Software Solutions 563 Blanding Blvd Ste 3 Orange Park, FL 32073 (800) 377-8406, (904) 213-0448 Chuck Sowers, Vice President csowers@dhsworldwide.com www.dhsworldwide.com DHS offers Total Recall Destruction Management Software – the most comprehensive software for your shredding operation. Total Recall provides automated billing and invoicing, state-of-the-art barcode enabled bin tracking, customer relationship management and robust dispatching/routing tools. DHS Worldwide is also the global leader in Records, Data Protection and Digital Imaging Management software.

Dun-Rite Tooling Cortland, IL (800) 209-3145 www.dun-rite.com

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Eastern Wire Products Jacksonville, FL (800) 351-8138 www.eastern-wire.com Elite Storage Solutions Irvine, CA (949) 757-1377 www.elitestoragesolutions.com EMPLOYERS Reno, NV (888) 682-6671 www.employers.com

eRouteIt, LLC 4201 Lowell Circle Lincoln, NE 68502 (402) 202-2518 Brad Moncur Brad.Moncur@erouteit.com www.erouteit.com Spend less time working in your business and more time working on it. CRM, Routing/ Mapping, Document Management that is seamlessly integrated with your accounting system for complete business management and licensed for unlimited users. Designed specifically to address the needs of medical waste transporters and secure document destruction companies.

F Downstream Data Coverage (877) 710-2498 Downstream@naidonline.org www.downstreamdata.com Downstream Data Coverage is professional liability insurance, developed exclusively for NAID members to address many of the shortcomings of standard professional liability coverage that leave service providers and their customers at risk. See ad on pg 12 DocuData Software Montreal, QC Canada (866) 789-2789 www.docudatasoft.com

Fire Protection Intl Consortium Concord, CA (925) 825-4643 www.globalfireprotection.com Firelock Fireproof Modular Vaults Kutztown, PA (610) 756-4440 www.firelock.com FLAMEX, Inc Greensboro, NC (336) 299-2933 www.sparkdetection.com

Security Shredding & Storage News. July / August 2013

9

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2013 Buyers Guide The Invicta Group Margate, Kent United Kingdom +44 (0)1843 220 256 www.theinvictagroup.co.uk Intek Truck & Equipment Leasing Roseland, NJ (973) 403-7788 www.intekleasing.com

HALLCO Industries, Inc PO Box 505 Tillamook, OR 97141 USA (800) 542-5526, (503) 842-8746 Russ Halvorsen, President / GM russ@hallcoind.com www.hallcoind.com Hallco Industries, Inc. designs and manufactures a full line of bulk materials handling solutions for trucks, trailers and stationary conveyor/ bin systems. The original LIVE FLOORS® systems are hydraulically powered and are comprised of a series of deck slats that move in sequence to both load and unload quickly and completely. See ad on pg 16

International Baler Corp Jacksonville, FL (800) 231-9286 www.intl-baler.com IPS Balers Mfg Baxley, GA (800) 280-2313 www.ipsbalers.com

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Himes Service Co Waco, TX (254) 776-3172 www.himesservice.com

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iiX Bryan, TX (800) 683-8553 www.iix.com Imperial Systems, Inc Jackson Center, PA (800) 918-3013 www.isystemsweb.com Independent Drug Testing Supply, Inc Irvine, CA (949) 727-3750 www.drugtestconsulting.com Inquirehire Davenport, IA (800) 494-5922 www.inquirehire.com Interlake Mecalux Melrose Park, IL (877) 632-2589 www.interlakemecalux.com

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Jake, Connor & Crew Inc 1644 Highland Road West, Unit #2 Kitchener, ON N2N 3K7 Canada (877) 565-5253 www.jakeconnorandcrew.com Designed and engineered to exceed the demands of the global waste and recycling industries, our containers deliver the maximum level of strength and protection you need.

Unmatched in structural integrity, durability and warranty, no container does more for you. With distribution locations available worldwide, we are “Your Best Friend in Waste and Recycling”. See ad on pg 14 Jordan Reduction Solutions Birmingham, AL (888) 733-8248 www.jordanreductionsolutions.com Jorgensen Conveyors, Inc Mequon, WI (800) 325-7705 www.jorgensenconveyors.com

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K-2 Partners, LLC Villanova, PA (215) 690-1133 www.k-2partners.com

10 Security Shredding & Storage News. July / August 2013

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Maren Engineering Corp South Holland, IL (800) 875-1038 www.marenengineering.com Merit Profiles Background Screening Grover Beach, CA (866) 522-5781 www.meritprofiles.com MOD - Meese Orbitron Dunne Co Ashtabula, OH (800) 772-7659 www.meeseinc.com Morrison Company Willoughby, OH (440) 946-8505 www.morrisoncompany.com

J.V. Manufacturing, Inc Springdale, AR (800) 678-7320 www.cram-a-lot.com

Harris Baxley, GA (800) 447-3526 www.harrisequip.com

Hustler Conveyor Co O’Fallon, MO (636) 441-8600 www.hustler-conveyor.com

KEITH Mfg Co PO Box 1 Madras, OR 97741 (800) 547-6161, (541) 475-3802 sales@keithwalkingfloor.com www.keithwalkingfloor.com KEITH® provides pallet and bulk material handling solutions through its WALKING FLOOR® conveyor. The unique horizontal unloading/loading system handles nearly any bulk material or palletized cargo. Both mobile WALKING FLOOR trailers and stationary WALKING FLOOR bins are used throughout the refuse and recycling, agriculture, energy generation and wood products industries.

See ad on pg 14

LP Wire-Tie Carthage, MO (800) 621-6141 www.lpwiretie.com

Lane-Link Group, Inc 6740 Horizon Road Heath, Texas 75032 (972) 772-5680 David Lane, President/CEO value@lane-link.com www.lane-link.com Lane-Link Group is the industry’s preferred transaction team, directly responsible for over $500 million in transaction value. Client focused and results oriented remain our philosophy and with more than 35 years combined deal-making experience, LaneLink’s credibility stems from partnering with our clients, producing results and closing transactions.

LaPorte & Associates Portland, OR (503) 239-4116 www.laporte-insurance.com

MRP Co, Inc Hunt Valley MD (800) 825-9106 www.mrpcompany.com

N NetGain 81 Rawson Ave Barrie, ON L4N 6E5 Canada (888) 797-2455, (705) 797-2455 info@netgainseo.com www.netgainseo.com At NetGain™ we provide our clients with access to cutting edge web development, graphic design, and marketing services. Using modern technologies and techniques, we have the tools at hand that will get you and your business found! See ad on pg 15 Nordfab Ducting Reno, NV (866) 652-1588 www.nordfab.com

Lock America International 9168 Stellar Court Corona, CA 92883 (800) 422-2866, (951) 277-5180 sales@laigroup.com www.laigroup.com For over 30 years, Lock America has been an innovative market leader in a wide range of industries that demand lock and security hardware. See ad on pg 13

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Ohio Blow Pipe Cleveland, OH (216) 681-7379 www.obpairsystems.com

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Pacific Coast Shredder Repair Co Newark, CA (877) 434-9747 www.pcsrco.com

2013 Buyers Guide

Pyromet Aston, PA (610) 497-1743 www.pyromet999.com

Shotgun Capital Advisors LLC Southlake, TX (817) 421-5940 www.shotguncapital.com

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QML, Inc Rumford, RI (401) 490-4555 www.qml.us

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Recycling Equipment Manufacturing, Inc Priest River, ID (800) 745-4736 www.remfg.com Republic Machine Louisville, KY (502) 637-6778 www.republicmachine.com RouteOptix Inc Kitchener, ON Canada (519) 896-9433 www.routeoptix.com

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Schaefer Systems Intl Charlotte, NC (800) 876-6000 www.ssi-schaefer.us

Shred-Tech 295 Pinebush Road Cambridge, ON N1T 1B2 Canada (800) 465-3214 shred@shred-tech.com www.shred-tech.com Shred-Tech® is globally recognized for designing and manufacturing first-class reduction systems and shredding machinery to costeffectively meet your waste reduction and recycling needs. See ad on pg 12 Shred Truck Outpost Brunswick, GA (877) 280-9868 www.shredtruckoutpost.com Shredfast, Inc Airway Heights, WA (800) 299-8437 www.shredfast.com

Trans Lease, Inc 4475 E. 74th Ave #103 Commerce City, CO 80022 (877) 600-6423, (303) 301-7651 Terry Lee, Business Dev. Mgr. tlee@transleaseinc.com www.transleaseinc.com Our vision at Trans Lease is to provide you with the means to capture and grow expanding markets through our ability to provide financial choices and personal service. Since 1991, Trans Lease has expanded, doing business in all 50 states plus Canada and Puerto Rico, with a lease fleet of more than 5,000 units.

See ad on pg 14

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UltraShred LLC Spokane Valley, WA (877) 468-5872 www.ultrashred.com

ShredSupply Cheney,WA (866) 520-8762 www.shredsupply.com

Vecoplan LLC PO Box 7224 High Point, NC 27264 (336) 861-6070 Bob Gilmore info@vecoplanllc.com www.vecoplanllc.com Vecoplan engineers, manufactures, and provides parts and service on a range of shredders and systems for processing medical waste, destroying confidential records, and recycling scrap. An integral component in turnkey waste sterilization systems, our machines are used to shred sharps, textiles, plastics, and for red bag processing. AAA NAID compliant for secure destruction of paper, film, disks, and hard drives. See ad on pg 5

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Waste Processing Equipment, Inc Rainsville, AL (256) 638-6355 www.maxpakbalers.com Waterfront Capital, Inc Fort Lauderdale, FL (954) 525-8448 www.waterfrontcapital.com

SMS Assembly, Inc Naples, FL (239) 596-2254 www.smsassembly.com SpaceRAK Marysville, MI (810) 364-7421 www.spacerak.com Schutte-Buffalo Hammer Mill, LLC 61 Depot St Buffalo, NY 14206 (800) 447-4634, (716) 855-1555 James Guarino, General Manager jguarino@hammermills.com www.hammermills.com For more than eighty years, Schutte-Buffalo Hammermill had been designing and manufacturing a full line of size reduction equipment including hammer mills, lumpbreakers, wood grinders, laboratory scale equipment, and more. Suitable for a wide variety of industries and applications.

See ad on pg 2 Security Engineered Machinery Co Westboro, MA (800) 225-9293 www.semshred.com

Summit Metal Products, Inc Batavia, IL (630) 879-7008 www.summitmetalproducts.com

T

Tryco Manufacturing Co Decatur, IL (217) 864-4541

ATTENTION Readers!

Schedule your 4-color logo/photo listing in our 2014 Buyers’ Guide Issue!

Cost is only $195, and your listing will reach over 5,500 industry businesses.

To purchase a listing, call 440-257-6453.

UNTHA America 5 Merrill Industrial Drive Hampton, NH 03842 (603) 601-2304 Bernhard Mueggler Bernhard.mueggler@untha-america.com

www.untha-america.com For over 30 years, UNTHA has been an international leader in mechanical size reduction for the recycling industry. Our advanced and proven technology as well as a wide range of single, dual and four shaft shredding systems enable us to provide costefficient, flexible, custom shredding solutions for virtually any commercial and industrial application. See ad on pg 20

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Van Dyk Recycling Solutions Stamford, CT (203) 967-1100 www.vdrs.com

WEIMA America, Inc 3678 Centre Circle Fort Mill, SC 29715 (888) 440-7170 info@weimaamerica.com www.weimaamerica.com For more than 25 years WEIMA has remained focused on the art of shredding and briquetting.

We are passionate about improving these technologies. We invite you to profit from this growing wealth of knowledge and experience by specifying a WEIMA solution to your next challenge - the WEIMA team is ready.

The Wilson Bohannan Lock Co Marion, OH (800) 382-3639 www.padlocks.com Wire Industries LLC Stockbridge, GA (770) 507-5700 www.wireindustriesllc.com

Security Shredding & Storage News. July / August 2013 11

In the News Dumped Microfiche Sheets Expose 277,000 Patient Records

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www.shred-tech.com

www.shred-tech.com

ort Worth, TX—Texas Health Harris Methodist Hospital Fort Worth says it is notifying hundreds of thousands of former patients whose personal information was disposed in a public park in May, according to an article on Star-Telegram.com.

The patient records were all on microfiche film, an outdated data storage medium consisting of sheets of plastic with small photographic images.

“We made an agreement for Shred-it to transport them to a facility that could destroy such records, but they didn’t get shredded,” said Wendall Watson, spokesman for spokesman for Arlington-based Texas Health Resources, the hospital’s corporate parent.

The breach involves about 277,000 records of patients who were admitted to the Fort Worth facility between 1980 and1990. The hospital is notifying all patients who were admitted to the hospital during those years. Names, addresses, birth dates, health information and some Social Security numbers were on the microfiche sheets.

Typically the hospital system destroys such records on-site, according to Watson.

Apparently, the shredding trucks operated by its contractor, Shred-it, could not handle the plastic sheets, but how they ended up in a Dallas park is still a mystery. Canadianbased Shred-it has not responded to media inquiries regarding the matter.

“The hospital believes that it is unlikely that the information was accessed or used inappropriately because microfiche is no longer commonly used, and specialized equipment is needed to read the information it contains. However, in an abundance of caution, the hospital is informing patients whose records may have been involved and is providing call center support to all patients and credit protection services to eligible individuals,” a Texas Health press release stated.

An unidentified resident who found the records in the park made a report to Dallas police. Microfiche sheets were found at two other locations in May, as well, Texas Health officials said.

According to a survey by Verizon, healthcare organizations accounted for less than 1 percent of 621 data breaches disclosed during 2012.

Info Request #157

Pull Away from the pack

“Talking intelligently about our liability coverage and how it better protects us and our clients has given us a critical sales advantage. Our competition doesn’t have a way to respond.”

- Scott Fasken Colorado Document Security

Professional liability coverage created for NAID Certified companies.

www.downstreamdata.com 877-710-2498 DownstreamData PullAway SS&SN AD5-13.indd 1

12 Security Shredding & Storage News. July / August 2013

5/23/13 11:02 AM

In the News HHS and WellPoint Reach $1.7 Million Settlement for HIPAA Breach

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ondon, England—DataGuidance.com’s PrivacyWeek reports that WellPoint Inc. will pay the US government $1.7 million in fines related to a security breach that occurred on the insurance giant’s Internet enrollment website.

The settlement agreement was struck between WellPoint and The USA Department of Health and Human Services (HHS) Office for Civil Rights (OCR).

Cited are potential violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Privacy and Security Rules.

The online breach, which occurred between October 23, 2009 and March 7, 2010, involved compromised health data of 612,051 individuals, including names, Social Security Numbers, telephone numbers, and health information. The breach was reported on March 8, 2010 but the company did not begin contacting affected individuals until June of the same year.

Also, a class action suit was filed and the state of Indiana imposed a $100,000 fine on the company and its subsidiary, Anthem Blue Cross Blue Shield. The online exposure affected 32,000 Indiana residents.

Wellpoint agreed to pay for up to two years of identity theft monitoring, as well as $50,000 for any theft that could be traced to the breach, according to a 2011 article on InformationWeek.com. A 2009 Indiana law requires companies to notify the state of certain data breaches.

In its 2012 investigation, the OCR noted that Wellpoint’s online database access policies and procedures fell short of the HIPAA Security Rule.

Inadequate software upgrade risks and user verification safeguards were cited. The agency urged “caution when implementing information systems changes, particularly those involving updates to Web-based applications or portals used to provide access to consumers’ health data using the Internet.”

The settlement sends a warning to business associates, including subcontractors who create and maintain websites and portals on behalf of HIPAAcovered entities because those companies also fall under the HIPAA omnibus rule changes.

Now Even More Options for Customers Who Want Their Own Key Codes!

Lock America Adds More New Key Codes for Padlocks and Console Locks.

Michigan Health Patient SSNs Hacked

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ansing, MI—Computers hosting the Michigan Cancer Consortium website were infiltrated by hackers resulting in the breach of nearly 50,000 patient files, Detroit.cbslocal.com reports.

The Michigan Department of Community Health (MDCH) says the data included patient names, birth dates, Social Security numbers, testing results and testing dates, but were not medical records, per se. The Michigan Cancer Consortium website is a service of MDCH. “Once we detected that this breach took place, all of the reports were removed from this website and are now only hosted on an MDCH secure server, so there’s no way that they can be accessed going forward,” MDCH spokesperson Angela Minicuci said, according to the report. “And now, being that the reports have been removed, we’ve corrected the issue.”

MCDH notified the patients and suggested they file fraud alerts with the three credit bureaus. No occurrences of identity theft have been reported as a result of the breach. Had it involved patient medical records, HIPAA rules call for individual notifications to be sent out and one year of free credit monitoring to be offered. Rules under the Identity Theft Protection Act applied, however, because the reports contained Social Security numbers.

INDESTRUCTIBLE Shredding Power “ Allegheny builds great equipment, provides exceptional service and support, and is up to date with the latest trends in the industry.”

Citadel Information Management

Because knowledge is power, and we’ve got plenty of both!

• Give your drivers and customers a single key that fits all the locks at a site.

• Ask your console or bin supplier for new available key codes, or contact Lock America directly.

One Key Can Now Operate All Your Locks!

solutions@alleghenyshredders.com

www.alleghenyshredders.com

Tel: (951) 277-5180 Fax: (951) 277-5170 www.laigroup.com

9168 Stellar Court CA 92883 800-422-2866 Corona,

© Copyright 2013, Allegheny Paper Shredders Corporation

Allegheny’s superior equipment is as rock-solid as our reputation – built on 45 years of industry innovation and expertise.

At Allegheny, we manufacture highperformance shredding systems that are easy to maintain and that don’t break down – with capacities exceeding any in the industry. And our expert consultants provide ALL the knowledge you need, from collecting to

Request our FREE Buyer’s Guide full of practical information that can help you save literally thousands of dollars!

So if you need indestructible shredding power and the know-how to be successful in this industry, call us today!

800-245-2497

sales@laigroup.com

Info Request #152

Info Request #106

Security Shredding & Storage News. July / August 2013 13

In the News Court Awards Walgreen Customer $1.44M for Alleged HIPAA Violation

[ Document protection? ]

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Document protection is never in question with Jake, Connor & Crew consoles and bins.

ndianapolis, IN—A superior court ruled in favor of a Walgreens customer for an alleged HIPAA violation involving the sharing of prescription information, according to an article on BeckersHospitalReview.com.

The customer brought the lawsuit when she learned a Walgreens pharmacist had looked up her prescription records and disclosed the information to outside parties.

She was awarded $1.44 million in damages after a jury decided the company violated HIPAA privacy rules. The lawsuit claimed Walgreens was negligent in training the pharmacist and shares the blame for the compromised patient information, according to a report in the Indiana Star newspaper.

The case is significant because of the substantial jury verdict that was applied using HIPAA as the basis for the confidentiality standard in a private cause of action against a provider.

Walgreens issued a statement emphasizing it’s seriousness in safeguarding the privacy of medical records and that the pharmacist had admitted she was aware of the company’s privacy policy and had knowingly violated it. She was appropriately disciplined for her action.

The company will appeal the ruling.

“We believe it is a misapplication of the law to hold an employer liable for the actions of one employee who knowingly violates company policy.”

attention: readers!

For the right solution, contact: www.jakeconnorandcrew.com or call 1-877-565 -JAKE (5253) Jake, Connor & Crew’s containers are recyclable, comply with LEED® and CARB II regulations and are JCAHO compliant.

Would you like more information about products and equipment advertised in this issue? If so, please complete the Equipment Locator Service form located between pages 10 & 11 and fax to 440-257-6459.

We don’t just protect documents, we protect your reputation.

Info Request #105 JCAC_SSSN_QuarterPgLockItAds.indd 2

12-08-30 1:59 PM

Shredder Truck Financing Made Easy

• Low Initial Investment • Lease or Loan Financing • Financing new or pre owned equipment

www.keithwalkingfloor.com

• Simple Application Process • Serving the U.S. & Canada • Competitive Rate Structure

Financing The World Of Transportation Terry Lee Direct: 303-301-7651 . Cell: 937-620-9400 tlee@transleaseinc.com . www.transleaseinc.com

Info Request #117

14 Security Shredding & Storage News. July / August 2013

Info Request #160

In the News Naid Opens Ssd Research Study to Applicants Through September

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hoenix, AZ—NAID will begin accepting applications on Sept. 2 from service providers and software developers that wish to be considered for the applied research study on the efficacy of solid state drive (SSD) sanitization solutions. Applications will be accepted through Sept. 30, after which six applicants will be selected by the NAID SSD Research Task Force.

“The task force has put together a structured methodology for the project,” said task force co-chair Angie Singer Keating of Reclamere, Inc. “It is designed to test the real-world application of SSD sanitization techniques, while rigorously sticking to established research protocols as well as protecting the interests of the participants.

The intent of the research is not to validate or approve any proprietary sanitization product or process. The task force will never see the results from any individual participant. Only the participants themselves will see how they stacked up against the aggregated study results.”

As mobile and tablet devices rapidly take over the market, the task force wants to make sure there are secure and proven methods of SSD sanitization. Therefore, NAID commissioned Dr. Steven Swanson to conduct the research. Dr. Swanson has been published among the most referenced studies on SSD sanitization and is considered an expert in the industry. NAID intends use the findings to refine its position on SSD sanitization as well as provide guidance to the NAID Certification Rules Committee, NAID staff, and consumers. The association will publish the study’s aggregated findings, giving practical and regulatory context to results.

Massachusetts Health Service Agency Records Found in Dumpster

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pringfield, MA—Some 200 paper records of Behavioral Health Network (BHN) patients were discovered in an unsecured dumpster on BHN’s grounds in early July, reports 22NewsWWLP.com. The breach became publicized when a 22News team investigative reporter followed a tip from a Springfield individual who said he noticed personal files in the dumpster while he was out on a walk.

Behavioral Health Network is a non-profit behavioral health service agency that provides services to children, adult, families, and communities in Western Massachusetts.

According to the BHN website, the records were of patients seen at the agency’s Agawam Counseling Center (ACC) between January 2001 and November 11, 2006. BHN says only those clients seen at ACC during that timeframe were impacted. The agency immediately began contacting the affected clients directly by mail.

The paper records ended up in the dumpster when they were inadvertently collected for disposal, along with BHN administrative records. Upon learning of the situation, BHN immediately secured the dumpster and thoroughly searched it for all BHN paper medical records. All such records found were removed and secured at BHN’s storage facility, according to the BHN website. BHN has confirmed with the person who put the records in the dumpster that all the records that were taken that day from the BHN facility to be thrown away were put only in that particular dumpster.

Vecoplan Sponsors Car #23 at the NASCAR Nationwide “Feed the Children 300”

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ecoplan, LLC recently sponsored car #23 at the NASCAR Nationwide “Feed the Children 300” which was held at Kentucky Speedway in Sparta, KY. The #23 Vecoplan Ford Mustang was fielded by Rick Ware Racing and driven by Harrison Rhodes.

The race was sponsored by Feed the Children and through this partnership with Speedway Children’s Charities; Feed the Children will deliver 500,000 pounds of food and supplies to families in racing communities across the country.

According to Len Beusse, COO – Vecoplan LLC, “this race was the perfect opportunity for Vecoplan. We’re located in the south, the birthplace of NASCAR, our subsidiary Vecoplan Midwest is about 30 minutes from Kentucky Speedway, we’re neighbors with the fine folks at Rick Ware Racing, Harrison Rhodes is not only an up and coming driver but also a young Christian man of character and integrity, and our company mission ‘Technology For A Sustainable Tomorrow’, ties in perfectly with ‘Feed The Children 300’, after all the reason we strive for a sustainable tomorrow is for our children.”

Kim James, Marketing Communications Director – Vecoplan LLC, added, “we’re all judged by the company we keep and Vecoplan is happy to be affiliated with Harrison Rhodes and Rick Ware Racing.”

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Security Shredding & Storage News. July / August 2013 15

In the News

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Whistleblower Suit Settlement Reached on Shred Size Noncompliance

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hiladelphia, PA—A Pennrecord.com article reports that two of the nation’s largest commercial shredding services have reached a settlement agreement with the United States government for failing to comply with federal shred size standards.

The qui tam (whistleblower) case was brought against Shred-It Inc. and Iron Mountain, Inc. by Douglas Knisely, owner of a paper shredding business based in Pennsylvania. Knisely charged that the two companies (both US government contractors) did not cut government documents to the size required under the General Services Administration’s standards, which was specified in their contracts. The basis for the case was false and fraudulent claims for payment under the rules of the False Claims Act. In a qui tam case, a private individual who assists a prosecution can receive all or part of any penalty imposed. Court records do not indicate the amount Knisely might receive.

Under the terms of the settlement agreement, Iron Mountain would pay the federal government $800,000 while Shred-It would pay $300,000, according to Zane David Memeger, the U.S. Attorney for the Eastern District of Pennsylvania. Both companies also agreed to pay attorneys’ fees stemming from the litigation.

Court records indicate a third defendant, Cintas Corp. was named in the suit but was not a party to the settlement agreement.

“Defendants’ failure to shred government documents using shredders designed to meet the size specifications mandated in their contracts with the United States potentially exposes sensitive, private and sometimes classified government information to persons not authorized to receive such information,” the complaint stated.

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16 Security Shredding & Storage News. July / August 2013

In the News Staples, Best Buy, Office Depot Earn High TakeBack Coalition Marks

S

an Francisco, CA—Electronics retailers Staples, Best Buy and Office Depot outdid their competition in taking back and recycling the devices they sell, reports an article on EnvironmentalLeader.com.

That’s the good news. The bad news, according to electronics recycling watchdog, Electronics TakeBack Coalition, is that more than half of the 16 retailers the Coalition tracks failed.

Electronics TakeBack Coalition is a nonprofit which promotes green design and responsible recycling in the electronics industry. The Coalition advocates policy changes, along with voluntary industry initiatives. Each year the organization calculates the amount of recycling that manufacturers and retailers do through their trade-in and collection programs and issues a “report card.” The report card evaluates the retailers’ programs against 20 criteria, including convenience, transparency, collection volumes and responsible recycling.

Of the $20 billion in electronics it sells, for example, Wal-Mart lacks what the Coalition considers a viable take-back program for its customers and does not break down the volume of electronics it collects into types of devices. Similarly, Amazon, Costco, Sam’s Club and Sears failed to demonstrate the levels of effort that do not show they are serious about collection and recycling, the Coalition believes.

According to the Coalition website, Wal-Mart and many of the other electronics retailers tout their trade in programs, where consumers may mail back used items and receive store credit. The problem is, only phones, tablets, cameras, etc. are accepted.

“They don’t take the low-value stuff that people really need help recycling – TVs, monitors, printers, VCRs, DVD players and other stuff you plug into your TV,” the Coalition’s website copy explains.

Mail back programs are inconvenient for most consumers, according to the Coalition, which wants to see the low-scoring retailers do what Best Buy, Staples, and Office Depot have done – use their stores as e-waste collection centers.

Another Coalition goal is to support environmentally responsible recycling.

Six of the 16 (37 percent) retailers are using certified e-Stewards for their recycling or trade-in. The e-Steward standard does not allow vendors to export toxic e-waste to developing countries.

On the policy front, making electronics collection a legal requirement has been found to increase recycling, as demonstrated by New York State. Results for the first phase of the New York State Electronics Producer Responsibility Law, which began April 1, 2011 and ended Dec. 31, 2011 shows that the number of electronics take-back sites had increased by 77 percent across the state, and more than 44 million pounds of scrap electronics were collected.

The report says the law saved local governments millions, if not tens of millions, of dollars, by shifting the financial burden of post-consumer product management away from municipalities and toward producers.

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Security Shredding & Storage News. July / August 2013 17

In the News Fed Fines Executive Recycling More than $4.5 Million

E

nglewood, CO—U.S. District Judge William Martinez recently sentenced Brandon Richter, owner and CEO of Executive Recycling Inc., to 30 months in federal prison followed by three years of supervised release, reports an article on BizJournals.com.

Executive Recycling and Richter personally, were fined $4.5 million. Richter must forfeit $142,241 and pay $70,144 in restitution to Boulder, Broomfield, El Paso, and Jefferson counties, and the Denver Newspaper Agency (the former operator of The Denver Post) as victims defrauded by paying for domestic recycling that wasn’t done. The company sold some $2 million worth of cathode ray tubes monitors containing lead, and other toxic e-waste to China via a brokered deal consisting of close to 400 shipments between 2006 and 2009.

A former vice president of Executive Recycling, Tor Olson, was a co-defendant in the criminal case. Olsen was sentenced to 14 months in prison. At sentencing, Richter told Judge Martinez he never meant to deceive anyone or rip customers off.

Richter volunteered to be legally responsible for 80 percent of the forfeiture, fine and restitution, shielding Olson, his former employee, from a portion of the sentence.

Richter also was convicted of hiding export documentation from the Environmental Protection Agency during an inspection that followed a “60 Minutes” television investigative report on the environmental problems associated with illegal e-waste exports to China and elsewhere.

The sentence and fine show that there are no shortcuts in following U.S. export laws, Kumar Kibble, special agent in charge of Homeland Security Investigations said in a statement.

“This CEO also intentionally deceived the public for years by falsely advertising an environmentally friendly recycling business plan within the United States,” Kibble said. “Instead, he regularly exported tons of obsolete and discarded electronic equipment containing toxic materials to third-world countries, and took actions to illegally hide these practices from government officials.”

Richter’s defense lawyer says the federal government’s cost of prosecuting the case dwarfed the value of what Executive Recycling’s clients lost.

“I have represented people accused of, and who have committed, horrific crimes.

This isn’t one of them,” Mackey said. “The impact was that some people — not all of them — didn’t get their electronics disposed of in a way they approved of. Was it wrong? Yes. Was it a crime? Yes.” “But no one lost their jobs as a result of Executive Recycling’s misrepresentation and none of the victims in the case were financially ruined,” she said.

“The defendants in this case not only caused actual harm to the environment by shipping electronic waste overseas for dumping, they defrauded their customers by falsely claiming to be disposing of that waste in an environmentally safe way,” said U.S. Attorney John Walsh said in a news release.

“As cases like this one show, federal investigators and the U.S. Attorney’s Office can and will reach beyond our country’s borders to investigate crime and prosecute wrongdoers.”

Richter has continued to operate electronics recycling and computer refurbishment businesses under the names Tech Cycle and Lightning PC.

Fifth Annual “Shredding For Kids” Event Co‑Sponsored by Vecoplan

V

ecoplan, LLC, in conjunction with HPB Insurance Group, recently sponsored the fifth annual “Shredding For Kids” fundraiser. The event raised funds by providing secure document destruction to individuals and small businesses for .50 cents a pound with a $5 minimum. In addition to donating their shred trucks for the day, Vecoplan provided personnel to operate the trucks and help with logistics for the event. All monies from the event went to the Boys & Girls Clubs of Greater High Point (High Point, NC).

“Thanks to the folks at Vecoplan, HPB Insurance Group and our many wonderful volunteers.” stated Thomas Falgout, President & CEO of Boys & Girls Clubs of Greater High Point. “Once again this year’s “Shredding for Kids” fundraiser was a tremendous success! Funds raised support programs that benefit over 1,250 youth in the High Point community.”

Approximately 5,000 lbs. of documents were shred during the event, raising nearly $3,000 for the charity. “Vecoplan’s trucks shred confidential papers down to almost confetti-size. People are always impressed with how small the shred size is, and that’s a big part of the event’s success,” added Holly Feree, VP of Development Boys & Girls Clubs of Greater High Point.

18 Security Shredding & Storage News. July / August 2013

Congress Looks to Ban Dumping of US E-waste

W

ashington, D.C.—A newly introduced bill, The Responsible Electronics Recycling Act, if passed by Congress, will ban American firms from sending e-waste overseas for recycling, according to a report on BoingBoing.net.

E-waste consists of discarded computers, TVs, phones and other consumer electronics or components. It is the fastest-growing sector of waste management in the US, where the Environmental Protection Agency (EPA) estimates more than 3.4 million tons of e-waste is generated per year.

As concerns rise over environmental, health and national security risks, Reps. Mike Thompson (CA-05) and Gene Green (TX-29) introduced “The Responsible Electronics Recycling Act (RERA) of 2013” to impose strict limitations e-waste disposal.

Under the legislation, tested and working equipment can still be exported to promote reuse. Products could also still be exported for warranty repair or due to recall. However, consumer electronic equipment, parts and materials that contain toxic chemicals could not be exported to nations outside of OECD member countries or the EU. This legislative approach is consistent with the e-waste policies adopted by most other developed nations via international treaties, such as the Basel Convention and Basel Ban Amendment.

H.R. 2791 was introduced not long after a federal judge fined Colorado firm, Executive Recycling over $4 million and sentenced two of its employees to 30 months in prison for fraud. From February 2005 to January 2009, the company led customers to believe their e-waste was being responsibly discarded and recycled. A large portion of the materials collected included 100,000 cathode ray tubes (CRTs), glass video display components known to contain lead. The company exported some 160 cargo containers of CRTs out of the country between 2005 and 2008 while telling costumers that collected waste would be disposed of safely and responsibly. During that time, however, the company was negotiating for the sale of the waste to China, according to the U.S. Attorney’s office in Colorado.

More than 100,000 cathode ray tubes were exported in 160 cargo containers out of the country between 2005 and 2008.

“The defendants in this case not only caused actual harm to the environment by shipping electronic waste overseas for dumping, they defrauded their customers by falsely claiming to be disposing of that waste in an environmentally safe way,” said U.S. Attorney John Walsh said in a news release.

“As cases like this one show, federal investigators and the U.S. Attorney’s Office can and will reach beyond our country’s borders to investigate crime and prosecute wrongdoers.”

While there are domestic recyclers that currently process e-waste, they have a hard time competing with overseas recycling facilities that have few, if any, labor and environmental standards and are thus able to offer cheaper services. A U.S. International Trade Committee (ITC) report also states the RERA will help increase U.S. exports and create jobs.

“Each year, millions of tons of e-waste are discarded in the U.S. and shipped to developing nations for unsafe salvage and recovery,” said Rep. Thompson. “By carefully regulating the export of e-waste, this bipartisan legislation creates goodpaying recycling jobs here in the U.S., while taking concrete steps to address a growing environmental and health crisis.”

H.R. 2791 has garnered bipartisan support with original Republican cosponsors, Reps. Mike Coffman (CO-6), Steve Stivers (OH-15) and Mike McCaul (TX-10).

The bill’s original Democratic cosponsors include Reps. Thompson, Green and Louis Slaughter (NY-25).

In 2008, the Government Accountability Office (GAO) reported that many of the developing nations that receive e-waste from the United States do not have the capacity or facilities to safely recycle and dispose of these used electronics.

H.R. 2791 also creates a research program at the Department of Energy to help assess the recycling and recovery of Rare Earth Metals from electronics. This provision will help ensure the proper collection and recycling of precious and strategic metals.

The electronics industry, including such giants as Hewlett Packard, Dell, Apple, Samsung and Best Buy support the legislation. It is also widely supported by the recycling industry, including the Coalition For American Electronics Recyclers, which includes more than 100 companies operating more than 185 processing facilities in 34 states; and the environmental community, including the Electronic TakeBack Coalition (ETBC) and the National Resources Defense Council (NRDC).

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