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Volume 8, Issue 3

May / June 2011

Security Shredding Storage News

Official Publication of the Security Shredding & Paper Recovery Markets Visit us online at


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 All Source Security Container Mfg. Ltd. – pg 8 & 19 Bomac Carts – pg 16 Jake, Connor & Crew – pg 2

Lock & Locking Systems Lock America Intl. – pg 8

Mobile Truck Shredders Alpine Shredders Ltd – pg 20 Shred-Tech Limited – pg 14 ShredFast Inc – pg 15 UltraShred, LLC – pg 16 Vecoplan LLC – pg 13

Mobile Shred, Collection Trucks Help Drive Document Destruction Industry

Moving Floor System Keith Manufacturing – pg 14

Paper Balers Excel Mfg., Inc. – pg 8 Harris – pg 8 IPS Balers, Inc. – pg 8 NEXGEN – pg 18

Replacement Parts Dun-Rite Tool – pg 17

Stationary Shredders & Grinders Allegheny Shredders – pg 18 Cresswood Recycling Systems – pg 17 Waste Revolution – pg 8

Waste commodity purchasers Dan-Mar Components – pg 7 SMS Memory – pg 10


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here’s more than meets the eye when shopping for a mobile shredding truck. Manufacturers tend to agree, as Mike Oden of Alpine Shredders notes with a chuckle, that all mobile shred trucks built in North America are good, they’re all white and they all shred paper extremely well. But beyond what Oden calls this obvious “sea of sameness” lurks numerous differences, with features designed by manufacturers of mobile shred truck and collection vehicles to meet the wide ranging needs of their customers. “A customer in Nebraska with a fairly rural route in all likelihood may want a different truck from us than a customer in downtown New York or Chicago, so we have equipment to suit different customer needs,” notes Joe Roberto, vice president of sales and marketing for Shred-Tech. Much like shopping for a personal vehicle, mobile shred and collection trucks come with a wide array of choices, ranging from costs, the chassis they are built on, size, payloads and throughput to the types of shredding mechanism, such as hammermills, grinders or pierce-and-tear, employed. Also important to potential buyers — especially since the trucks are the lifeblood of any mobile document destruction business — are reliability, safety, ease of use/maintenance and service.

“Many new truck buyers simply look at vehicle pricing assuming all trucks are the same,” notes the UltraShred web site. “They are not.” To help sort through the hype and hyperbole, Security Shredding and Storage News interviewed document destruction companies that utilize mobile shredding and collection trucks from some of the leading manufacturers in North America. In the next two pages of this article you will read what these companies have to say about their trucks.

Continued on page 3

Inside This Issue

10 MARKETING 3.0: Breaking Away From the Clutter in the Information Destruction Industry 12 IT Security: The Rising Costs of Quick Response

17 HHS Says US Electronic Medical Record Security is Flawed 18 Study: Government and Industry Getting Closer on Information Security Priorities and Solutions

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Security Shredding & Storage News

Mobile Shred, Collection Trucks Help Drive Document Destruction Industry Continued from page 1

A Shred Ahead PUBLICATION STAFF Publisher / Editor Rick Downing

Contributing Editors / Writers P. J. Heller Robert J. Rua

Production / Layout Barb Fontanelle Christine Pavelka

Advertising Sales Rick Downing

Subscription / Circulation Donna Downing

Editorial, Circulation & Advertising Office 6075 Hopkins Road Mentor, OH 44060 Ph: 440-257-6453 Fax: 440-257-6459 Email: 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 2011 by Downing & Associates.

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rom a startup in 2003 in North Carolina, A “It’s really amazing how over the last eight Shred Ahead has shredded the competition, years technology has changed not just the way we do expanding to eight states from Virginia to business but the type of equipment we do business Florida. on,” he says. “Had this technology been around Started by John Chapman and Tom Hanlon, when we started, we might have been able to grow they have parlayed their company, faster.” through organic growth, “It’s really amazing The majority of shred trucks acquisitions and word of mouth, used by the company are Shredhow over the into what they describe as the Tech MDS-35GTRs, which have last eight years largest independent shredding a throughput rate of up to 8,000 technology has company in the South. pounds per hour. Shred-Tech changed not just the “We hire really great employees MDS-26GTX vehicles are also way we do business who take extra service to a new utilized. Additional trucks are but the type of level. We have a lot of repeat expected to be purchased this year, customers,” Chapman says. Chapman says. equipment we do The North CarolinaChapman says the initial business on.” headquartered company provides purchase of vehicles from Shredonly on-site mobile shredding services for a wide Tech was prompted by recommendations from other variety of clients, recycling up to 13 million pounds people. Among factors that Chapman and Hanlon of paper a year. It employs about 50 people. considered were the longevity of the company, Just as the company has evolved over the last wanting to ensure it would be around in the future eight years, so, too, have the Shred-Tech mobile for parts, service and additional truck purchases. shred trucks it utilizes. “One thing that we know is that the Shred-Tech “In the last eight years, we’ve really seen the equipment is very solid. It doesn’t seem to fail us,” evolution of how trucks have grown,” Chapman says. Chapman says. “These trucks are essentially mobile “They tend to get better and better. The technology factories. They just do a great job for us.” breakthroughs and the engineering breakthroughs (More information about A Shred Ahead is are kind of astonishing. available at

Gateway Recycling


ustomer concerns over privacy issues pushed Gateway Recycling to expand its paper recycling business into the document destruction industry. Gateway, which was founded in 1994, made the move into documment destruction in 2002. This addition to Gateway’s business helped to grow the tonnage serviced from 7,000 to 10,000 tons per month. Gateway, which serves the Midwest, has plants in both Cleveland (Gateway Products Recycling) and Toledo (Gateway Recycling and Waste Reduction). Gateway’s Cleveland operation, which employs 45 people, provides in-plant document destruction. Two Shredfast Master Vault trucks are used to transport sensitive documents to the facility, where the material is shredded, then shipped off for pulping. The Toledo operation, which employs 22 people, utilizes an on-site document destruction truck, also from Shredfast. Gateway President and Owner, Tom Sustersic, realized an opportunity in the document destruction business and saw a strong synergy with the paper recycling services his company already offered. Once he made the trip to Spokane, Washington to view the Shredfast trucks, he knew he found a good partner for Gateway. “We looked at all the trucks in the industry and talked to a lot of people who had various trucks,”

recalls Sustersic. “We found the Shredfast name continued to come up with people who were satisfied with the vehicles as well as with their reliability and throughput.” The on-site truck that Gateway purchased over three years ago continues to run strong and handle their workload. “It was the first on-site truck that we owned,” Sustersic says. “We’re still running the truck and producing like the day we bought it.” Sustersic says the security provided by the collection trucks is unprecedented. They feature a hard drive system that monitors the loading of all documents, as well as vehicle stops and the voice recording of conversations behind the truck. That information can be downloaded to the company’s computers, providing it with another layer of security. Gateway’s customers come primarily from the industrial, commercial, legal, healthcare, insurance and financial industries. Gateway also teams up with a local organization about 10 times a year to offer community shredding events. Sustersic says the company may add another onsite truck to its fleet which will come from Shredfast. “We’re very satisfied with their product,” he says. “We think they’re tops in the industry.” (More information about Gateway can be found at www.

Continued on page 4

Security Shredding & Storage News. May / June 2011


Security Shredding & Storage News

Mobile Shred, Collection Trucks Help Drive Document Destruction Industry Continued from page 3

Shred A Way

Affordable Shred

avid Ward can easily reel off the reasons for the success of Shred A Way, the company he started nine years ago. “What differentiates us from the competition is, number one, the security that we provide,” he says. “Then there’s the service that we offer, the fact that our price is good and we’re local.” Those factors — especially the security issue — have helped Ward grow his business serving South Carolina, western North Carolina and eastern Georgia. He averages slightly over 400,000 pounds a month in shredded paper, processed through a fleet of seven UltraShred Predator G3 mobile shredding trucks. In addition to its on-site shredding service, Shred A Way offers in-plant shredding, operates a document storage facility, shreds computers and e-waste, scans and images documents and has a recycling program. The company, based in Piedmont, S.C., employs 12 people. Wanting to offer the ultimate in document destruction prompted Ward to go with the UltraShred vehicles with hammermills that pulverize documents. “They’re secure, fast and easy to use,” he says. “UltraShred can meet Department of Defense standards. “We got into the document destruction industry for security, not just for shredding,” he adds. An added selling point for potential customers is the fact that the trucks have a small window where they can view their pulverized documents. “Watching it on a computer go through the shred truck is one thing, but seeing the final outcome is another,” Ward says. Shred A Way customers include banks and financial institutions, hospitals and medical facilities, schools, businesses and residences. The company also participates in several community shredding events in partnership with a local television station. He says the public has numerous choices when it comes to choosing a document destruction company “but the meat and potatoes of it is how your information is destroyed. That’s the key. Do you really know how your information is being destroyed? Are you receiving the most secure destruction that is out there? “The whole name of the game is if somebody wants something destroyed and shredded, you’ve got to destroy it the most secure way,” Ward says. “That’s the whole reason we chose UltraShred.” (More details about Shred A Way are available on its web site at

hen existing or potential customers call Affordable Shred, chances are the person who answers the telephone is one of the owners of the company. That personal touch, coupled with the fact that the Springfield, Ill., business is locally owned and operated, has contributed to its success since it was spun off seven years ago from F&W Resources, the family-owned recycling company. At the time of the spin-off, Affordable Shred was begun as a plant-based company. After about a year, it transitioned to an on-site mobile shredding operation, which proved more economical and less labor intensive. Today, the four-person company, including owner Rick Weekly, processes between 80,000 and 200,000 pounds of paper a month. In addition to on-site shredding, the company offers a “Drop & Watch” location in Springfield. There, a shredding technician assists customers, who can watch the entire shredding process from start to finish. The company serves customers throughout central Illinois, from Lincoln to Effingham and from Indiana to Missouri. It is also active in community shredding events, participating in some 40 to 50 events a year in partnership with local charities. Just as Affordable Shred customers like the personal service they receive from the company, Weekly says that same type of service from Alpine Shredders convinced him to purchase their mobile shred trucks. He recalls conversations with one truck manufacturer who “was trying to tell me what I needed rather than what I wanted.” That prompted him to look elsewhere, with the search eventually ending at Alpine. “They were down to earth and they took time to meet with me,” he recalls. “Everything was relatively simple on their truck.” Weekly ended up purchasing the Alpine Pro Series 720 STAK. He was particularly sold on its high throughput (6,500 pounds per hour); the first shred truck he purchased from another company was inexpensive and turned out to be too slow. Earlier this year, he purchased a second truck from Alpine, this one a Pro Series 720 V-MAX that can shred more than 9,000 pounds per hour. Weekly says service from Alpine has been stellar. “I like their personal service,” he says. “They make us feel like we’re important instead of just a number.” (For more information about Affordable Shred, visit their web site at



4 Security Shredding & Storage News. May / June 2011

DataChambers Records Management


ecognition of the growing need to destroy clients’ boxed records that were being stored at its facilities and the increasing opportunities to provide shredding services to its client base, was the impetus for DataChambers Records Management to launch its own document destruction services. “We had grown our box storage to the point where we had so many boxes coming off our shelves to be destroyed for our clients that it didn’t make any sense for us to continue giving that away for someone else to shred,” recalls, Chris Kelley, chief operations officer of the North Carolinabased company. “Providing the shredding services ourselves allows us to control the entire process now and our clients like the peace of mind that comes with that.” Today, the company services a wide base of customers, providing mobile shredding services throughout the state. It has five facilities serving the major markets in North Carolina, including its headquarters in Winston-Salem, with records center operations in Greensboro, High Point, Charlotte and Raleigh. The mobile shredding business is part of DataChambers Records Management, which provides services including paper storage and management, tape vaulting and document imaging to more than 1,000 clients. Since offering its mobile shred services, the company typically recycles 180 tons of paper monthly. The company was started in 1974 as Twin City Warehouses, a public warehouse and distribution company, and branched into records management in 1983. It initially operated a small plant-based shredding operation in the 90s, but eventually shut it down. It got into on-site shredding in 2003 with the purchase of a Vecoplan VST-32 mobile shred truck; it subsequently upgraded to a Vecoplan VST-42e which offered greater throughput and improved payload capability. The company also operates a smaller non-CDL shred truck. Kelley says two factors prompted the purchase of the Vecoplan mobile shred truck: the fact that it produced a consistent particle size superior to many other shredders and that Vecoplan has a service center, if needed, only a few minutes away. He also says that both the VST-32 and current VST-42e have been highly reliable. “If I had to go to a third truck, I would have no hesitancy whatsoever to go back to Vecoplan.” (More information about DataChambers can be found at Continued on next page

Security Shredding & Storage News Continued from previous page

The following are profiles of some of the leading North American manufacturers of mobile shred and collection trucks. (Manufacturers are listed in alphabetical order.)

Alpine Shredders


ounded in 2004, Alpine Shredders has always followed a simple concept: manufacture mobile shred trucks that are extremely simple to maintain. “ We h av e t r i e d t o stay focused on simplicity, reliability and performance,” says Peter Viveen, Chief Operating Officer and a founding partner. Other than following regular industry lubrication standards, the company’s solid cutter shaft shredders require no maintenance, according to Mike Oden, Director of Sales and Marketing. “What makes our shredder different is the combination of metallurgy and surface treatment and simplicity,” Oden explains, noting that the shredder system has only six major parts. That simplicity is responsible for keeping in operation one of the first shred trucks the company shipped in January 2005. That vehicle just had



hredfast boasts an entirely new concept in document shredding with its sawtooth shear, designed to produce a small consistent shred size that guarantees a completely shredded end product without incorporating a screen. In addition to its Master Vault Sawtooth Shear (SF-MVSTS) line of mobile shredding trucks, the company also offers its workhorse SF300-PTS series of pierce-and-tear mobile shredders, which operates at a throughput of about 6,000 pounds per hour. That level is achieved by direct drive and Patented metering feed system. “We guarantee it will do 4,500 pounds an hour. Out in the field it’s generally going to do 6,000 pounds an hour. To date, we have never had to make an excuse because the PTS throughput is a disappointment, says Sales Manager Brian Drew. “That’s how serious we are about our throughput.” According to Shredfast, the sawtooth shear shredders are lighter than pierceand-tear units resulting in a higher legal payload and

its shredder replaced after some 4,000 hours and processing millions of pounds of paper. Alpine, based in Kitchener, Ontario, offers a total of six models in its V Series and Pro Series line of shred trucks. The vehicles range in throughput from 4,500 pounds per hour to 9,000 pounds per hour. Payloads range all the way up to 17,500 pounds. Alpine has been building trucks on a variety of truck chassis — including Kenworth, Freightliner, International, Peterbilt, Hino and even a Mitsubishi — since the company was started. “We have a long history of building

on multiple chassis platforms,” Oden says. “We offer all of them because we’re really interested in serving our customers’ needs. Being the only complete manufacturing facility in the industry, we have also provided many custom features on demand . . .” The company has designed its shred trucks to be easy for owners and operators to maintain. “We truly believe that an operator of any shred truck should not have to wait days for a service technician to arrive, or should an operator pay mileage fees at any time,” Viveen says. “Our commitment to self service, in concert with local service, means that any operator has service and parts close by . . . usually in their town or city.”

will provide a more consistent shred. Throughput is rated at 3,500 pounds per hour and the paper is shredded smaller then the industry average. Also offered is a line of secure collection equipment with full automation, incorporating options like transmission lockout if all doors are not secured. The collection trucks offer legal payload capacities ranging from 9,000 pounds to more than 20,000 pounds. Unless specified, all of t h e ve h i c l e s incorporate S h r e d f a s t ’s patented M a s t e r va u l t v a n b o d y, constructed of double-walled interlocking panels. “This van body is the strongest available to the industry, offering assurance that even in an accident, confidential information is held securely,” Drew says. Shredfast, founded in 1998, is focused on its customers’ needs, offering to fly a qualified customer to prove how Shredfast

equipment outperforms in the document destruction industry. “Our sales approach is based on education,” Drew says. If that is done correctly, “We trust prospective customers to make the right decision when they are ready”. T h a t ’s h o w m u c h confidence we have in our product line. “ I n i t i a l l y, w e developed our customer base because of our higher throughput,” he says. “We’ve retained our customer base with very strong service, parts and low equipment failure — much of the operating system is simple enough, if immediate field repair is crucial 24/7 technical support assistance can talk an operator through it over the telephone.”

Alpine Shredders 30 Alpine Court Kitchener, ON, N2E 2M7 Toll free: (866) 246-5634

Shredfast 13026 W. McFarlane Road Airway Heights, WA 99001 Toll-free: (800) 299-8437 Phone: (509) 244-7076

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Security Shredding & Storage News. May / June 2011


Security Shredding & Storage News

Mobile Shred, Collection Trucks Help Drive Document Destruction Industry Continued from page 5



or nearly four decades, Shred-Tech has custom designed and manufactured engineered reduction systems and shredding m a c h i n e r y fo r a variety of security, waste reduction and recycling ap p l i c at i o n s. Materials handled range from e-waste, metals, tires, confidential documents and medical waste to plastics, wood and packaged products. Shred-Tech designed its first mobile document shredding truck in the early 1980s and today, according to company officials, has grown to the largest document shredding truck manufacture in the world. Currently they offer seven different document shredding truck models and two models of mobile collection trucks. “We have the broadest model offering with a wide array of features and benefits to suit a multitude of customer needs,” says Joe Roberto,



igh-volume throughput and high security — with a screen as small as three-eighths of an inch — are among the hallmarks of UltraShred, a Spokane, Wash.-based company offering both shred and collection trucks for the document destruction industry. The company, started in 1979, utilizes pulverizing hammermill technology in its Predator G3 shred trucks, which it touts as the most secure destruction method in the industry. Its trucks are the only vehicles that provide “pulverized” output that many new government contracts require, the company says. “Other forms of shredding, such as strip shredding, cross shredding and pierce-and-tear, have been reassembled,” it notes. “The shredding technology employed by the Predator G3 reduces all manner of paper to the most secure size in the industry, providing customers with maximum security.” Operators can change the particle size in about 10 minutes with the company’s quick change sizing screens. An additional security feature is that the

Vice President of Sales and Marketing. The latest addition to its mobile document shredder line is the MDX-1, which the company says “offers ultra-high security, performance and payload.” The vehicle has a 13,000 pound payload and features a dual-mode system that can easily and quickly switch between standard and high-security modes at the touch of a button. When operating in standard mode, the ST-15H shredder achieves up to 6,500 pounds per hour of throughput. Activating the highsecurity mode produces a small shred size while maintaining a throughput of up to 2,500 pounds per hour. The MDX-1 does not rely on screens or

moving additional shredders in and out of position, which makes the system user friendly, reliable, easy to service and cost-effective, the company says. Another feature from Shred-Tech is the Plus-1 micro-control system, which provides realtime video of the shredding process. This allows the operator to monitor the entire process and the customer peace of mind while watching the destruction of sensitive information. Shred-Tech is headquartered in a 67,000-squarefoot plant in Cambridge, Ontario. The plant includes in-house engineering and design services which can customize standard shredders to meet specific customer requirements. A fully equipped parts and service center recently opened in Apex, N.C.

shredder unit partially de-inks heat-set inks commonly used in printers, copiers and fax machines. The company offers two transfer trucks and three Predator G3 shred trucks which vary in payload from 5,000 pounds to more than 19,000 pounds. Throughput on each is up to

He notes that hammermills do not require sharpening, helping to reduce operating costs. Up to 3.5 million pounds of paper can be processed before the hammers need to be replaced, he says. UltraShred’s proprietary grabber lift, standard on its trucks, allows any type of bin to be lifted, up to a 98 gallon container. Shred trucks available on the market today may appear similar, Ferrante says, but buyers should carefully examine features. “Secure destruction suppliers owe it to their customers to make sure the documents they shred are safely destroyed,” he says.

7,000 pounds per hours. “High speed shredding will cut your labor expense and will cut your shredding time fuel expense in half,” says Doug Ferrante, Western Regional Sales Manager for UltraShred.

6 Security Shredding & Storage News. May / June 2011

Shred-Tech 295 Pinebush Road Cambridge, Ontario Canada N1T 1B2 Toll-Free: (800) 465-3214 Phone: (519) 621-3560

UltraShred Sales & Service, LLC 409 N. Thierman Road, Suite A Spokane Valley, WA 99212 Toll-free: (877) 468-5872 Phone: (509) 244-1894

Continued on next page

Security Shredding & Storage News Continued from previous page



ecoplan brings more than 40 years of shredder manufacturing experience to the design, engineering and manufacture of its mobile shred trucks. “One word describes Vecoplan mobile shred trucks — versatility,” says Sales Manager Mike Campbell. That versatility is reflected in the fact that the single-shaft patented grinder can shred everything from documents to e-scrap to bowling balls in what the company calls a “dump and run” fashion. “The versatility of the vehicles is in their ability to do not just paper, but everything from wood to rubber to mobile phones to apparel,” Campbell says. This technology can do it all.” Operators can determine the shred size, utilizing inexpensive screens that can be quickly and easily changed. It can produce a particle siz e as small or smaller than a pierce-and-tear shredder, Campbell notes. Vecoplan manufactures the VST-32, the VST-

42e and is developing a third, non-CDL truck. The VST-32 shred truck features a single-shaft rotary shredder that cross-shreds in one pass. With its high-torque, auto-reversing (low speed, low noise) Torsion Point cutting rotor and precision integral feed ProcessRam, the shredder provides high shredding efficiency, shock load and impact. The electric VST-42e is designed for high throughput and dual-use service — on-site mobile or plant-based stationary. The vehicle employs a PTO driven, 180kVA generator to power its shredding system. With the engine running, the vehicle can be used like any other shred truck. If the engine is turned off, the system can run on a plant’s power as a plant-based system, thanks to the company’s QuickLink plug and play docking technology. T h e V S T- 4 2 e a l s o features a touch screen



anufacturers of mobile shred and collection trucks, much like the auto industry, offer numerous makes and models to meet the specific needs of document destruction companies. The vehicle manufacturers are constantly on a roll, adding features, improvements and incorporating the latest technologies into their trucks to help fuel the growth of the document destruction industry.

control panel, with five program settings: highvolumes of paper; tapes, pill bottles, credit cards and other plastics; books, file stock and banker’s boxes; uniforms and textiles; and hard drives and other e-scrap. Vecoplan’s latest development, code named VST-32 “Shorty,” was unveiled at the 2011 National Association for Information Destruction conference. The vehicle will feature a new shredder utilizing two Torsion Point cutting rotors to achieve twice the shredding performance, the company says. The truck is expected to be available in the fall of this year. Vecoplan was started in 1969 in Germany as a manufacturer of wood chippers. It entered the recycling market in the early 1980s. The company, with its U.S. headquarters in High Point, N.C., has been operating in North America markets since 1989. Vecoplan P.O. Box 7224 High Point, NC 27264 Phone: (336) 861-6070

If you would like to receive additional information about one or more of the manufacturers featured in this article, please refer to the reader service card located between pages 10 and 11 of this issue. By completing and faxing this form to us, we can notify the manufacturer(s) that you would like to receive more information about their shred trucks.

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Product/Equipment Profiles

Allegheny Introduces Off-Loading System


he Allegheny Off-Loading System for Mobile Trucks offers a convenient, streamlined way to reap significant profits from shredded paper. The Off-Loading System uses an integrated, two-conveyor system that feeds paper directly into a baler. After the mobile truck discharges paper onto the hopper, the paper is carried up an inclined conveyor and fed into your baler. Features of the Allegheny Off-Loading System for Mobile Trucks: • Heavy all-steel construction provides ruggedness and durability • Extra wide hopper (10’) accepts large volumes of shredded paper • Custom designed to your facility and your baler • Inclined conveyor is equipped with cleated belt for maximum paper pickup • Sensors will pause in-feed conveyor to allow baler time to cycle For more information on Allegheny Shredders’ full line of 100% American-made destruction equipment, contact Allegheny Shredders at 800-245-2497, 724-468-4300,

Cresswood Introduces “DigiMax Destroyer” Shredder


nnovating to meet niche-market demands for hard drive, digital device, and digital media destruction, Cresswood Shredding Machinery, Cortland, IL, has launched the “DigiMax Destroyer” Hard Drive Shredder. Designed for higher-volume processing, the heavy-duty DigiMax can completely shred up to 600 hard drives per hour down to a particle size that will meet e-Cycler preferences, and secure destruction requirements. The “DigiMax Destroyer” features quiet and energy-efficient low-RPM, high-torque opposing rotor technology. It is powered by a 20 HP motor, and is equipped with an electrical anti-jamming system, auto-reverse function, and a key-lock switch to ensure safe, secure, and reliable performance. Options include operator, or conveyor infeed. Compact and versatile, the “DigiMax Destroyer” can anchor plant-based operations, or may be truck-mounted for on-site secure shredding of hard drives and digital media. For more information, contact Cresswood at 800-962-7302, or visit their website at

or visit

WEIMA Spider HRS comes to WEIMA America Showroom

Alpine Shredders V Series Launched


EIMA’S Spider series singleshaft shredders come equipped with an interchangeable pressing system, designed to handle a variety of requirements. The system comprises two modules, with the cutting mechanism built around a rotor with various blade sizes and shapes. Three additional pressing systems are also available as an option, depending on the material to be shredded. These include a horizontal slide for shredding lumps, a curve-shaped ram for handling film, and a diagonal slide for processing hollow molds. The modular pressing systems are incredibly quick to replace, making it effortless to tailor the machines to different material flows. Single-shaft shredders are supplied in rotor widths of 1000 mm, 1500 mm and 2000 mm, with a rotor diameter of 450 mm, delivering rotational speeds of up to 150 rpm.


he new ALPINE Rotary Feed Hopper (Patent Pending) has advanced the performance of our 512 Solid Cutter System to the point that it performs as well as many existing large trucks in the market today,” states Alpine Shredders COO Peter Viveen. The Patent Pending Rotary Feed Hopper accelerates paper flow through the 512 shredder pushing throughput rates up while keeping gross equipment weight down, according to Sr. Sales Rep Guy Wakutz. “We utilize the Rotary Feed Hopper and the 512 system in our V Series trucks to engineer more payload into these trucks. Utilized in conjunction with the Keith™ Walking Floor system, this engineering provides our clients with an option to choose between the higher performing PRO Series trucks or the higher payload V Series trucks.” For more information call toll free 866-246-5634 or visit

For more information contact WEIMA toll free at 888-440-7170 or visit

Hallco Introduces Their New i-6000 Series - Internally Sealed for Prolonged Drive Unit Life

Jake, Connor & Crew Announces JCAHO and LEED compliant consoles and wheeled bins



he newest innovation from Hallco Industries, our new i-Series drive units, features anodized aluminum manifolds and internally sealed cylinder barrels, optimizing seal life in corrosive environments. Additional wear rings have been added to the head manifold/ shaft bore providing replaceable wear surfaces and increasing drive unit life. By moving the seal inside the cylinder barrel, the seal is positioned further away and protected from corrosive debris such as road salt, which ultimately prolongs drive unit life. For more information contact Hallco Industries, Inc. at 800-542-5526 or visit

ake, Connor & Crew recently introduced their fully JCAHO compliant containers.  These exclusive consoles, the “Ergonomic Series” console (32 dry U.S. gallon) introduced in 2011, the “eConsole” introduced in 2008 and our 32 gallon “Pedigree Series” wheeled bin, introduced in 2010,  fully comply with the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) requirements for shredding containers.  These containers are also LEED compliant and are fully recyclable. Jake, Connor & Crew is one of the world’s largest manufacturers of containers for the document protection industry.

For more information on Jake, Connor & Crew products & accessories please contact sales@ or 519-576-9865 or visit

Security Shredding & Storage News. May / June 2011


Security Shredding & Storage News

MARKETING 3.0: Breaking Away From the Clutter in the Information Destruction Industry


he information destruction industry is booming – and has experienced its most growth within the past five years. The increasing entrepreneurial presence is a large part of the thriving field of ‘shred barons’ who are capitalizing on the demand for information destruction solutions. While governance is responsible for implementing the legislation that sets information destruction mandates, more organizations are realizing the severity of negating proper disposal practises. The fact of the matter is that organizations from every industry are united by one imperative factor: all organizations possess information that needs to be destroyed. With that being said, how are the major shred companies making it known that they are the heavy hitters? What is it about an industry that is so important to others that enables the top dogs to stay on top? Moreover, how can smaller shred companies show that they can compete as well?

Find Out Where You Stand


aving a comprehensive understanding of your business from every angle is merely a baby step in deciphering how to grow within a competitive landscape. Pinpointing the external factors that surround and influence your business will allow you to properly strategize moving forward. Find your differentiating factor (low cost, flexibility, off-site and/or on-site, packages, etc.) – do you have one? Distinguish the competition and analyze your competitive advantage versus the other guys.

Info Request #144

Shred companies that rely solely on local business (and most do) understand the need to exhaust their tools and focus on items like: customer relations, discount packages and customizable shred plans as selling points. It’s these ‘specialized services’ that must headline promotional material to help create a company’s brand. Shred companies that creatively deliver value to their cliental often reap the recommendations and positive industry affirmation that lead to conversions, thus are able to diversify and further acquire more business. But how do companies stand a chance at growing in an industry so tied together by loyal relationships? How are you able to build bridges like these?

Let them know you’re there


he average company spends $30,000 toward Yellow Pages print campaigns annually – alarming – considering that 70% of individuals seeking products and services currently use the web to acquire information. These users are already on the brink of sale-point and are active in the buying process (i.e. hunting for quotes, asking questions, inquiring about purchase arrangements, etc.). Which organizations are getting the first crack at this large chunk of opportunity? The answer: the companies with the greatest web presence.

Like you, her, him, him and her – I cannot afford a poor choice


hred Company A, from a corner in Indiana, with a small client roster and a hard-capped marketing budget of $5,000, doesn’t pay any mind to outsourcing marketing efforts and prefers his/her annual local listings and the odd advertising opportunity (like a sign on the left field wall) – yet wants to grow the business. There are countless marketing opportunities that Shred Company A can allot money towards. However, keeping the marketing initiatives internal will make it difficult to decipher the return on investment (ROI) – especially for a small business that is focussed on customer service and driving sales; very little resources are available to analyze the marketing progress. So to play it safe, Shred Company A will invest $4,000 toward a state directory campaign and the rest toward flyers, business cards and miscellaneous. Shred Company B, hailing from a small community in Texas, with a similar customer base and a marketing budget of $5,000 is also looking to expand the business – and is opportunistic about the potential of building the business on the internet, with hopes of gaining referrals and inquiries. Shred Company B spends the full $5,000 on web development, graphic design, web marketing and search engine optimization (SEO). Obviously a

10 Security Shredding & Storage News. May / June 2011

giant decision – Shred Company B is understandably apprehensive but is comforted by a sharp website design, a fully-managed SEO campaign and the capability to easily edit information on the website whenever desired. An influx of clicks and traffic to the website stir up social media buzz, emails, phone calls and quote requests – business is rolling.

Give me the value


fully-functional website works for you even when you aren’t. It’s accessible to your customers (and potential ones) 24 hours a day, 7 days a week. It serves as the foundation that allows for many company initiatives to launch, including: internal company communication (i.e. memos and newsletters for employees), company announcements (i.e. news blog), online shopping, company contact and directions, inventory database and most notably – a landing post for various web marketing campaigns. Aside from the instant credibility associated with an attractive website, is the opportunity to extend important information about your company toward the public. A website can shed light on the values and vision of the company, as well as provide in-depth descriptions about products and services. The content within a website aims to demonstrate as much transparency as possible with the public. A well-written frequently asked questions (FAQ) section, for instance, can answer ‘qualifying questions’ that potential clients may have about certain services or company policy. An “about us” section provides users with an introduction to the company; while an “events” page highlights important dates that influence the business, thus letting users know that the company is routinely updating content and is involved in the community. The web is another realm for your company to grow and thrive in. Online marketing campaigns help companies act with purpose and attain measurable goals. Applications like Google Analytics and Google AdWords analyze websites and diagnose performance, thus decipher trends as well as forecast ROI. Web analysis tools provide the appropriate methods to help a company website move forward and cover more ground in a market.

How important is social media?


ital – it is the life force behind all interactive activity stemming from your website. Social media efforts help to establish a company’s notoriety and serve as the continuous promotional vehicle behind a company. Embracing various social media websites like Twitter, for instance – allow for the flow of dialogue amongst associations and potential clients, creating a diverse realm of pleasant and informative exchanges.

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Security Shredding & Storage News Continued from previous page The most brilliant social media initiatives are cultivated out of personable extensions, acknowledgement and popular discussion rather than self-promotion and blatant advertising. The purpose of social media is misinterpreted by traditional marketing approaches because old methods “speak to” – instead of “speak with”. Companies are benefitting in creatively promoting company campaigns through social media streams. Contests, for example, invite users to engage in activity that directly promotes the company and rewards users for actively playing a part in circulating company messages. Using Facebook as a secondary company page for various promotions is great way to demonstrate a willingness to explore business with diverse audiences, as well as boost SEO initiative. Facebook is a large part of the new social media movement that holds an increasing percentage of weight in the popular search engine algorithm; in other words – a Facebook page is another extension of content that is important in establishing stronger web presence. It is extremely important to take into consideration that social media is the most potent and useful when campaigned collaboratively – using major social media channels as mutually-beneficial applications that support one another. Fortunately, these efforts can be administered and developed by SEO experts.

Bringing your business closer to the client


ustom web development brings company content closer to the client. Customizable applications cater specific information towards users and allow them to interact in a wide network strewn together by tablets, cellphones, digital planners, laptops and computers. These new top-level domains are referred to as dotMobi domains – mobile-friendly websites that allow users to easily access your web content via cellphone for quick and easy accessibility. Possessing a dotMobi domain shows a keen understanding of the direction information accessibility is heading; demonstrating diversity and a dedication to making information readily available to users in all target markets. Online shopping, social media, emails and smart phone ‘apps’ are just some of the many applications made possible through dotMobi domains. QR Codes are also cellphone-friendly applications, often seen on business cards, vehicles, billboards and just about anything visible – that allow users to

snap pictures of a code and be directed to a company website. These cellphone capabilities are a part of the new wave of web marketing that is geared toward making information more accessible to the mobile user.

Moving forward


rganizations that are quick to adopt new and improved methods of maintaining relationships often realize the benefits of remaining relevant. Undeniably, the bulk of these ties remain online. Organizations do not stand a fighting chance of growing unless they get involved and establish an online presence. It allows companies to put their best foot forward and take-on the ever-changing waves of activity on the web. Traditional advertising methods are trumped by the power of user interactivity, search engine optimization and social media campaigning. Staying prominent amongst competition is a battle best fought through e-business (and by the professionals who understand it). Organizations are now faced with the obligation to build a business on two fronts – traditional and online through the web. Hiring proven professionals to establish your company on the web is a guaranteed way to ensure that your name is putting forth a professional website that possesses the capabilities to challenge the market and engage new and existing audiences. The secret lies in the dedication of the marketing campaigns. Large organizations monopolize on keywords, page rank (obtained by spreading links to the various company pages) and social media activity – hence why they are so prominent on the web. While understanding that these elements work in conjunction with each other to promote a brand, it is the variables of dedication and persistence that make web campaigns really take flight. NetGain SEO is a web development and marketing firm specializing in web design, graphics design, marketing and search engine optimization (SEO) in the Information Destruction and Records Management industries. NetGain SEO is a proud member of NAID and PRISM. For information about NetGain SEO and how they can help you grow your online presence, please visit www.NetGainSEO. com or call 1-(888)797-2455 and ask for Drew Dekker or Tamar Spina. They will help you get your website found and stand out in the crowd in the rapidly growing industry of Information Management.

Security Shredding & Storage News. May / June 2011 11

Security Shredding & Storage News

IT Security:

The Rising Costs of Quick Response BY ROBERT J. RUA


recent benchmark study reveals an alarming trend that shows no sign of slowing – the rising costs of data breaches. The study was released by Symantec Corp., one of the world’s leading information storage and security solutions providers, and the Ponemon Institute (PI), a leading researcher of privacy and data protection practices. It is their sixth annual study of data security benchmarks. Fifty-one American companies participated in the study, representing 15 different industries, including: healthcare, pharmaceuticals, finance, retail, services, education, technology, manufacturing, research, transportation, hotels and leisure, media and communications and energy. These disparate companies all had one thing in common – in 2010 they experienced some form of large data breach. The amount of records compromised in these breaches varied from 4,200 to 105,000. According to the study, organizational costs related to data breaches have grown significantly in each of the past five years.

In 2010, the average cost per data breach reached a whopping $7.2 million or approximately $214 per compromised record. That’s a significant jump from 2009 when the average per-record cost was $200. The most expensive data breach included in the 2010 study cost a company $35.3 million to resolve. The least expensive data breach was $780,000. The driving factor behind these rising costs? Compliance pressures for faster response times to escalating data security threats. According to the study, the good news is that organizations in the private and public sectors are showing signs that they are making serious efforts to improve the speed of their responses to data breaches. Forty-three percent of the companies that participated in the study reported that they notified victims within one month of the breach, a 7 percent improvement from 2009. Here is the bad news: Quick responders saw significantly higher per-record costs than slower responders for the second consecutive year. The average per-record cost for companies that notified their customers within one month of a data breach was $268, a 22 percent increase over the average per-record cost for quick responders in 2009 – no data breach response attribute had a higher percentage increase last year. By contrast, organizations that notified customers more slowly (30 days or more) paid on average $174 per-record, 54 percent less than quick responders. Slow responders actually saw an 11 percent decrease in their average per-record costs from 2009. •

The study took into account a wide range of data breach related costs, including: expense outlays for detection, notification and ex-post response;

direct costs such as the expense of forensic experts, outsourced hotline support, free credit monitoring subscriptions and discounts for future products and services;

and, indirect costs such as in-house investigations and the extrapolated value of customer loss due to turnover or diminished acquisition rates.

Analysis of the economic impact of lost or diminished customer trust, as measured by churn rates, was also taken into account in the study. Regulatory compliance contributes to lower churn rates by boosting customer confidence in organizations’ IT security practices. Overall, average abnormal churn rates across all 51 incidents stayed level at 4 percent. Pharmaceuticals and healthcare were once again the industries with the highest churn rate (both up a point to 7 percent in 2010). The industries with the lowest abnormal churn rates were the public sector (less than 1 percent) and retail (1 percent). Industries with the highest 2010 average per-record costs were communications ($380), financial ($353) and pharmaceutical ($345). Those with the lowest costs were media ($131), education ($112), and public sector ($81). For the third consecutive year the study found that direct costs accounted for the largest proportion of overall data breach costs, while indirect costs continued their trend of gradual decrease. Increases in legal defense costs remain a leading reason for increased spending in ex-post response, as companies fear successful class action lawsuits by breach victims. These trends indicate that companies are making serious efforts to repair the damage breaches cause and are slowly rebuilding customer and partner confidence. This, in turn, is lowering the number of present and potential customers who take their business elsewhere after a breach. These results may also bolster the argument that organizations are focusing more on regulatory compliance, as direct costs correspond to the cost activities covered by data protection regulations.

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12 Security Shredding & Storage News. May / June 2011

Security Shredding & Storage News Continued from previous page

Malicious Attacks on the Rise


rotection against viruses, malware and spyware infection has become organizations’ top priority. According to the study, 2010 marked the first time that malicious and criminal attacks were the most common and most expensive cause of data breaches. In previous years, malicious attacks have been consistently ranked the least common form of data breach. Thirty-one percent of all data breach cases included in the study involved a malicious or criminal act, a 7 percent increase from 2009. At $318 per-record, the average cost of malicious attacks increased a staggering 48 percent from 2009. Nearly all of the study respondents (97 percent) reported that they considered cyber attacks the most severe threat to their ability to carry out their missions. Breaches by third-party outsourcers are becoming slightly less common but much more expensive. Though third-party mistakes experienced a slight decline in 2010, their per-record cost rose $85 (39 percent) to $302; an indication that compliance with government and commercial regulations for data protection are dramatically raising breach costs involving outsourced data. Similarly, breaches involving lost or stolen laptop computers or other mobile data-bearing devices have remained a consistent and expensive threat. While the number of reported breaches involving stolen or lost mobile devices decreased from 34 to 35 percent, the per-record costs rose $33 (15 percent) to $258 per-record. Historically, deviceoriented breaches have cost more than many other types of breaches due to the expense of necessary investigations and forensics.

Vigilance and Prevention: An Ongoing Challenge


egligence remains the most common cause of data breaches. The increase in number of breaches caused by negligence in 2010 rose only slightly – from 40 to 41 percent – but the average cost per-record rose 27 percent to $196 per-record. This steady trend reflects the ongoing challenge of ensuring employee and partner compliance with security policies. Companies are getting more vigilant about prevention, as system failures decreased from 36 percent in 2009 to 27 percent in 2010. This trend indicates organizations may be more conscientious in ensuring their systems can prevent and mitigate breaches through

new security technologies and compliance with security policies and regulations. The study data seems to bear it out: Investments in identifying and remediating data breaches are paying off. Encryption and other technologies are gaining ground as post-breach remedies, but training and awareness programs remain the most popular. Sixtythree percent of respondents use training and awareness programs after data breaches, down 4 percent from 2009. Encryption is the second most implemented preventive measure as a result of a data breach, at 61 percent. Both encryption and data loss prevention solutions have increased 17 percent since 2008. “We continue to see an increase in the costs to businesses suffering a data breach,” says Dr. Larry Ponemon, chairman and founder of the Ponemon Institute. “Regulators are cracking down to ensure organizations implement required data security controls or face harsher penalties. Confronted with both malicious and non-malicious threats from inside and outside the organization, companies must proactively implement policies and technologies to mitigate the risk of costly breaches.” “Securing information continues to challenge organizations at all levels, but the vast majority of these breaches are preventable,” adds Francis deSouza, Senior Vice President, Enterprise Security Group, Symantec. “Organizations must not only protect the data itself wherever it is stored or used, but also create a culture of security including training, policies and actions. The results of this study show that companies with information protection best practices in place can greatly lower their potential data breach costs.” By taking a holistic approach to data protection, companies can better protect data wherever it is - at rest, in motion or in use. Symantec recommends that organizations implement the following best practices, whether or not they have suffered a data breach: •

Assess risks by identifying and classifying confidential information.

Educate employees on information protection policies and procedures, and hold them accountable for non-compliance.

Deploy data loss prevention technologies which enable policy compliance and enforcement. For example, proactively encrypt company laptops to minimize damage following theft or loss.

Continued on page 14

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Vecoplan shreds more than paper. Whether Plant Based or Mobile, Vecoplan’s complete shredding systems allow you to offer services others can’t. Shred hard drives, audio/video cassettes, CDs, DVDs, laptops, credit cards, film, plastics, textiles, 3-ring binders, cardboard, large paper rolls, entire bankers boxes of documents, or any other type of paper. In short, complete “information” destruction regardless of what form the information is in. Shred more – Make more!


Vecoplan delivers particle size. Particle size delivers customers! As the document destruction market matures, more and more customers are demanding a smaller, more secure shredded particle size. With a Vecoplan shredder, you can deliver it. A quick and easy, 10 minute, screen change allows you to meet the most stringent particle size requirements of customers, like government agencies, that demand it and sell it to those customers that aren’t yet aware that they need it!

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Security Shredding & Storage News. May / June 2011 13

Security Shredding & Storage News

IT Security: The Rising Costs of Quick Response Continued from page 13 • •


Integrate information protection practices into your business processes. Vet and evaluate the security posture of third parties before sharing confidential or sensitive information. Pick responsible vendors that can guarantee data protection through encryption and appropriate procedures and controls. Also, ensure that third parties protect data on their employees’ mobile devices.

While manual and policy approaches are a good start, by themselves they are not as effective as a multi-pronged approach that includes automated IT security solutions. Many kinds of automated, cost-effective enterprise data protection solutions are now available to secure data both within an organization and among business partners. Some of the most popular and effective of these technologies currently available include: • Encryption (including whole disk encryption and for mobile devices/ smartphones). Ensure that portable data-bearing devices – such as laptops, smart phones and USB memory sticks – are encrypted, especially for extensive business travelers. Also, consider implementing inventory control, anti-theft devices and data loss prevention (DLP) policies, practices and technologies. • Data loss prevention (DLP) solutions. • Identity and access management solutions. • Endpoint security solutions and other anti-malware tools.








In addition, by centralizing the management of IT security solutions companies can automatically enforce IT security best practices throughout their organizations and align data protection with their security policies and regulatory or business-partner mandates. Companies in a rush to respond to data breaches often do not believe that

Continued on next page

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14 Security Shredding & Storage News. May / June 2011

Security &8:23Storage News sss adShredding June 2011_PRISM AD 6/7/11 AM Page 1 Continued from previous page


they have the time to bring in outside help to meet compliance requirements. As a consequence, fewer companies are using external consulting support, even though such support lowers data breach costs. The proportion of respondents that engaged outside consultants fell 7 points in 2010 to 37 percent. The study data suggests that moving too quickly through the data breach process may cause cost inefficiencies for companies, particularly during the detection, escalation and notification phases. Companies are choosing to absorb the additional costs of quick response due to the pressure of compliance with commercial regulations and state and federal data protection laws. Despite this pressure, PI and Symantec recommend that companies take as slow and thoughtful an approach to data breach response as possible – given the federal and state legal requirements applicable to their location, industry and circumstances of the breach.




erhaps the most striking study trend is the strong correlation between data breach costs and the presence or absence of major data breach causes or data protection best practices. Specifically, 2010 costs for breaches involving all major causes grew between 15 and 48 percent from 2009. Conversely, breaches that lacked those factors or illustrated best practices dropped between 1 percent and 27 percent. These figures may indicate that organizations’ data breach costs stayed relatively stable or only increased a small amount in most cases. As in prior years, data breach cost appears to be directly proportional to the number of records compromised. Therefore, larger breaches continue to be a more serious cause for concern than smaller breaches. Customer turnover in direct response to breaches remains the main driver of data breach costs: For the second straight year, abnormal turnover of customers after data breaches appears to be the dominant factor in data breach cost. Overall, the study data suggests that American companies are getting serious about their stewardship of sensitive personal data and are taking greater steps to ensure its protection from breaches. The study also reinforces the efficacy of best practices for IT security and privacy in protecting data and providing positive returns on investments.

DATA PROTECTION WORKSHOP OCTOBER 6-7, 2011 CHICAGO, ILLINOIS, USA JOINT EUROPEAN CONFERENCE NOVEMBER 7-9, 2011 LONDON, ENGLAND ANNUAL CONFERENCE 2012 MAY 15-17, 2012 LAS VEGAS, NEVADA, USA As a global organization, PRISM International meetings visit three continents each year. In November PRISM International will team up with NAID-Europe to offer our Joint European Conference.

For more information or to register for these upcoming conferences or workshops. Please go to our website at

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Security Shredding & Storage News. May / June 2011 15

In the News All Source Security Container USA Opens New Warehouse in Texas

Wisconsin-Based Firm Acquires Shredding Division of Central Wisconsin Company



ocument Destruction Shredding Companies, Record Management Companies, Suppliers and local businesses gathered recently for the ribbon ceremony at the grand opening of the newest All Source Security Container USA warehouse in Irving, Texas. Pete Pancel, President & General Manager, was joined by members of the Canadian/American Chamber of Commerce and the Irving Chamber of Commerce to make the announcement. The Irving,Texas location is part of a larger North American distribution and logistics network that brings quality North American products to regional markets, providing local jobs and using local businesses. According to Pancel, Irving, Texas is now their 4th fully-stocked warehouse in North America, joining the All Source Security Container family of locations in: Charlotte, North Carolina; Ontario, California and Barrie, Ontario.

.R.M.S. (Automated Records Management Systems, Inc.) recently announced the acquisition of the shredding division of K-tech Kleening Systems, Inc. of Weston, Wisconsin. With the acquisition, the Wisconsinbased information management company’s fleet of mobile shredding trucks will service areas to include Marathon, Portage, Wood, Langlade, Lincoln and Oneida counties. “We’re excited to provide new and expanded information management services to K-tech’s shredding customers,” said Eric Haas, president of A.R.M.S. “All of our mobile shredding trucks are equipped with the latest technologies to perform shred jobs at the customer’s facility, which allows the customer to be assured everything is properly destroyed. In addition, our security officers are equipped with the latest software and scanning technologies to provide our customers with optimal service requirements and reporting.”

RediShred Grows in the Midwest


issisauga, Ontario–Redishred Capital Corp.’s subsidiary, Proshred Franchising Corp., will now work with a new franchisee to operate a shredding business in Fishers, IN, a suburb of Indianapolis, to commence operations in June. The company currently has 18 locations. Ken Carite, the new Indianapolis franchisee, stated “I searched for over a year to identify the right business model for my new business endeavor. I selected Proshred because I think document security is relevant in today’s world of identity theft. I firmly believe that there is solid demand for a “best in class” service in Central Indiana. Meanwhile, the Proshred Security document shredding franchise in Kansas and Missouri has announced his acquisition of Secure e-Cycle, a company that has provided the latest in secure destruction and responsible recycling of end-oflife IT and electronic equipment for more than 10 years. Secure e-Cycle fills a void in the Midwest region, where small to medium-sized businesses are notably underserved in the removal and recycling of electronic equipment.

attention: readers!

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.

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Info Request #133

In the News HHS Says US Electronic Medical Record Security is Flawed


ashington, DC–The US effort to computerize medical records to save on healthcare costs and improve outcomes does not fully address security issues, say two government reports. According to the, the Office of the Inspector General of the Health and Human Services Department said that connecting hospitals with doctors to share patient data electronically is based on a system with inherent security problems. The problems in the system “need to be addressed to ensure a secure environment for health data,” said the main report. It added that there is concern about the effectiveness of security safeguards for personal health care information. The Health and Human Services Department has a department called the Office of the National Coordinator, which is in charge of the drive for e-records, and the Office of Civil Rights takes care of privacy law enforcement under the HIPAA law standards. The HHS report does mention that the initiative to have electronic records includes requirements for securely sending computerized medical information, application security rules, but does not require that same amount of security for the computer systems at hospitals and doctors’ offices, or “general IT security controls.” A second HHS audit addressed this when it examined computer security at seven hospitals of HIPAA standards and found 151 security flaws, with 80% of those problems being “high impact,” with possible results leading to costly financial losses or physical harm. The HHS report noted that the Civil Rights Office did not conduct security audits, nor did CMS, which has overseen HIPAA security issues previously. reports that The American Health Information Management Association is supporting the HHS Office of Inspector General report and welcomes the audits’ conclusions, which call upon ONC to “increase the security aspects of meaningful use in the form of standards requirements associated with electronic health records and health information exchanges.” But it also noted that the audits were “not large enough to be reflective of the state of the nation’s health information security.” AHIMA has asked ONC, the Office for Civil Rights and the National Institute of Standards and Technology to educate both states and health care providers on security issues during the implementation of the Health Care Affordability Act. The government encourages providers to adopt electronic medical records via Incentive payments that could amount to $27 billion over 10 years, with the proviso that providers who use paper records could face cuts in Medicare payments.

Subscribe to Security Shredding & Storage News. Call today 440.257.6453.

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"The versatility of Cresswood Shredders has made product destruction a profit center for SMS. We can process multiple materials with ease and with a quick screen-change, shred to the particle size the customer desires. As we like to say, ‘the Cresswood can handle it – and keep on walkin’!" "We’ve found that your ‘method’ of secure destruction matters. A few of our large financial institution customers will no longer allow destruction using a strip shredder. They inspected the output screened through our Cresswood, and pronounced it ‘extremely uniform, like confetti’. Security comes first, and our Cresswood Shredders give us a competitive advantage, and our customers the peace of mind they’re looking for."

A Cresswood HF-7870-125 Shredder handles all off-site secure shredding requirements for SMS. Two ‘custom built’ mobile shred trucks, equipped with Cresswood HF-5440-50, & HF-4430-49 Shredders deliver the processing versatility to completely grind products down to safe & uniform particle sizes on-site, as well.

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Security Shredding & Storage News. May / June 2011 17

In the News Study: Government and Industry Getting Closer on Information Security Priorities and Solutions


alm Harbor, FL–(ICS)2, a non-profit security professional group, and the administrators of the CISSP, announced key US government findings from its 2011 Global Information Security Workforce Study conducted by Frost & Sullivan. The study, based on an electronic survey of 10,413 respondents from private and public sectors worldwide, found that the US government is coming into closer alignment on information security priorities and solutions with their private sector counterparts, with both groups focused on addressing application vulnerabilities and the potential exposure of confidential and sensitive information, data loss and leaks posed by the growth in cloud computing, the proliferation of mobile devices and the increasing use of social media. “At one time, information security in the government sector was very different from the private sector,” the report read, noting that while government has long been focused on applying strong controls around the confidentiality of information, corporate entities are only now being forced to apply greater attention to the practice because of attacks on their data and infrastructure and tighter regulatory requirements. This shift means that the “issues facing government CIOs and CISOs and commercial CIOs and CISOs are highly similar,” study authors stated, adding that the only real differences lie in the government’s added concerns over internal attacks, cyber terrorism and organized crime. The responses of 145 C-level U.S. government survey participants confirmed the government’s demand for cloud technologies but also identified the need for more education to overcome a significant and potentially dangerous gap that exists between the goals of CISOs and the security skills required to protect these services. Specifically, respondents noted, information security professionals require a more detailed understanding of cloud computing, enhanced technical knowledge and better contract negotiation skills. Furthermore, Frost & Sullivan believes that government CIOs and CISOs better understand the security risks posed by cloud computing and will, therefore, be more secure in their deployment of cloud-based technology. For more, visit

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May/Jun 2011 issue of Security Shredding & Storage News