Security Shredding & Storage News Sep/Oct 2011

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Volume 8, Issue 5

September / October 2011

Security Shredding Storage News

Official Publication of the Security Shredding & Paper Recovery Markets Visit us online at www.sssnews.com

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CERTIFICATION FOR ELECTRONICS RECYCLERS

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y now, most people are aware of the skyrocketing global e-waste problem and its effects on human health and the environment. The e-waste problem is bad… really bad, and, unfortunately unsafe recycling practices are mostly to blame.

Not surprisingly, the Environmental Protection Agency (EPA) encourages all electronics recyclers to become certified through an accredited third-party auditor to ensure that they are meeting the industry standards for management and recycling of electronics.

We all know that safe recycling practices reduce the environmental and human health impacts of improper recycling, and conserve natural resources. But it’s also good for business. Safe recycling practices increase access to quality reusable and refurbished equipment to those who need them. Not to mention that it reduces energy consumption, thereby lowering costs. Thus, it can truly be said that certified recyclers are responsible recyclers.

But getting certified is hard work.

Recyclers that wish to be certified must periodically prove they’re on their mettle. In other words, they must subject themselves to the occasional third-party audit to make sure they’re up to snuff. Currently there are two prevailing standards for electronics recyclers, e-Stewards® and Responsible Recycling Practices (R2). Both are designed to ensure responsible recycling of used electronics, and

both are recommended by the EPA to maximize recycling and ensure safe management of materials by downstream handlers.

THE ANATOMY OF A CERTIFICATION AUDIT

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ccredited third-party certification bodies conduct audits to determine if organizations meet the requirements of safe recycling standards. They employ

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Inside This Issue 4

Navigating Export Regulations

11 Ex-Anonymous Hacker Gives Security Advice on Cisco Website 12 RERA Act Introduced to Build E-waste Recycling 17 Change of Delivery Systems Confuses Record Recipients 18 Federal Recycling Mandates in Early 2012 Could Change Face of E-waste Industry

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Security Shredding & Storage News

PUBLICATION STAFF Publisher / Editor Rick Downing Contributing Editors / Writers Paul Burck • Diana Mota Robert J. Rua • Penny Ouellette Production / Layout Barb Fontanelle • Christine Pavelka Advertising Sales Rick Downing Subscription / Circulation Donna Downing Editorial, Circulation & Advertising Office 6075 Hopkins Rd., Mentor, OH 44060 Ph: 440-257-6453 • Fax: 440-257-6459 Email: downassoc2@oh.rr.com www.sssnews.com For subscription information, 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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CERTIFICATION FOR ELECTRONICS RECYCLERS Continued from page 1

professional auditors who can communicate clearly, understand the electronics recycling industry and can produce consistent, thorough audits.

Accreditation of certification bodies is g ove r n e d by t h e A N S I - A S Q N at i o n a l Accreditation Board (ANAB). In order to be granted accreditation by ANAB, a certification body must demonstrate continued compliance with international auditing standards for confidentiality, impartiality, independence, objectivity, audit planning and practices, auditor competence, response to complaints and other issues. This provides assurance to the end user that an accredited certification body will conduct their audits in a professional and unbiased manner.

During Stage 2, on-site audits, auditors observe a recycler’s processes and activities, interview their personnel, and review procedures, documentation and records. They then compare their results to the requirements of the standard and determine whether or not a recycler should be certified. If an organization does not meet one or more of the requirements, the auditor will identify the nonconformance so the recycler can take action to fix the situation.

Auditors are trained to be open-minded. They are there to determine if a requirement has been met, not to dictate how requirements are to be implemented. Likewise, they are trained to focus

on personnel and activities within the audit scope, and to minimizing disruption to operations during the audit.

BASICS OF CERTIFICATION

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he first step in the certification process is the submission of the recycler’s company information to a certification body. This information should include the scope of the recycler’s business as well as the standard(s) to which they wish to be certified. A gap analysis can be performed to determine areas of noncompliance, but this is an optional step. After a recycler submits its information to the certification body, a brief Stage 1 audit is performed to determine their readiness for the in-depth Stage 2 audit. If they aren’t ready, there may be additional steps to take before continuing the process.

As noted previously, the Stage 2 audit involves a thorough examination of the recycler’s processes, record-keeping, etc. If at the completion of the Stage 2 audit the recycler demonstrates effective compliance, the certification body awards them with certification. After that, surveillance audits are conducted at least once a year to verify continued compliance. Every three years a recertification Stage 2 audit is conducted to ensure that the recycler is operating to standards as a whole.

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Navigating Export Regulations

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Proactive measures and strong relationships with government officials, industry associations, and customers can help exporters navigate sudden changes in export rules.

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xporting scrap is challenging even when recyclers know what the rules are and do their best to follow them. The rules tend to shift as much as the seas the exports sail on, however. Recyclers need timely, accurate information to stay on top of the export game. Misinformation, poor communication, and differing interpretations of export regulations often compound the challenges of exporting scrap. What might have worked numerous times before could all of a sudden become a problem because one official interprets a regulation differently than another official, causing delays and lost profits. Add to the mix new export regulations or changes to existing rules, and conditions can get downright daunting.

Recyclers can take steps to arm themselves with the information they need to clear up the muddy waters of exporting scrap. Clear and frequent communication, network-building, and strong relationships with customers, agents, governments, and trade associations give recyclers the knowledge they need to meet export challenges.

The Information Gap

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ecyclers say they have no problem with scrap trade regulations in general.

The goal of most trade rules is laudable—to ensure the quality of scrap entering the country, says Ranjit Baxi, managing director of J&H Sales International (London) and president of the paper division of the Bureau of International Recycling (Brussels). Countries that import scrap want material that is usable and safe, not waste that ends up in their landfills. Most regulations stem from problem shipments or other controversial issues with imported material. “In the past, people exported everything and anything,” Baxi says.

Recyclers’ biggest complaints are about the lack of timely, clear information about trade-regulation changes. “The worst thing that can happen in our business is confusion because you don’t know what you can or can’t ship, what you can or can’t import,” says Robert Voss, managing director of Voss International (London), who also serves as chairman of BIR’s International Trade Council and president of Eurometrec (Brussels), the European Metal Trade and Recycling Federation. Though government agencies can disseminate information quickly, the problem is that “we often don’t get the right information, even from the countries themselves,” he says. Scrap shippers generally “can overcome problems put in front of us, but if we don’t know exactly what the problems are, it’s difficult to overcome them,” Voss says.

Sometimes recyclers don’t find out about trade-policy changes—many of which are retroactive—until a shipment is on its way or sitting in a foreign port.

“That’s a big part of the problem,” says Scott Horne, ISRI’s general counsel and vice president of government relations. “That’s not the way it’s supposed to work.” Importing countries should notify international organizations such as the World Trade Organization and the Basel Convention secretariat of changes in their laws or regulations when they occur, he says. Instead, most scrap shippers find out about a new or altered regulation when their customer tells them about it. “Oftentimes [the countries] don’t provide notification, or if they do,

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Security Shredding & Storage News Continued from previous page it comes well after the fact, usually only because somebody is screaming that their shipment has gotten held up, and the holdup is a violation of international law,” Horne says.

Learning about regulation changes after material leaves the home port puts a strain on recyclers and consumers, Voss says. “If legislation changes when your goods are halfway across the world, it’s difficult to make a reasoned judgment as to the best way [to handle] it.” Alan Alpert, president of Alpert & Alpert Iron & Metal (Los Angeles), who heads ISRI’s trade committee, agrees. “There’s nothing you can do but deal with the problem.” Alpert gives this example: Customs agents at China’s Ningbo port changed the category in which they classified certain scrap radiators on Feb. 28, effective March 1—too soon for companies that had containers on the water to respond. Immediately, Ningbo implemented its new rule, but other ports did not. Companies affected by the change approached the Chinese government for clarification, and the government ultimately implemented the change nationwide. Alpert says China made the right decision, but “it took time and effort to sort everything out,” which slowed down or stopped trade in some scrap radiators for about a month.

Companies in that situation can find themselves squeezed into a corner, with limited options. “Sometimes it means switching cargoes to another destination,” says Bob Stein, vice president of nonferrous marketing for Alter Trading Corp.

(St. Louis) and president of BIR’s nonferrous division. Or, Voss says, the scrap shipper “may have to sell at a lesser value because it’s a better option than bringing the material back home.” Some recyclers choose not to ship to certain countries until issues are resolved, Horne says. “It’s simply a business decision because the risk associated with the uncertainty is too great to justify the financial reward of the sale.” When that happens, both sides lose. Some companies stop getting the raw material they need, while others are prevented from trading, Alpert says.

One additional complaint is that even when a country announces its regulatory changes, the rules can be unclear. “The way China implements its rules is always somewhat clumsy, subject to interpretation and reinterpretation,” says Randy Goodman, an ISRI trade committee member and director of international marketing and logistics for OmniSource Southeast (Spartanburg, S.C.).

“Sometimes it requires negotiation between ISRI, BIR, and our counterpart trade associations in China and the people writing the laws” to ensure everyone

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Navigating Export Regulations Continued from page 5 understands the regulation and what scrap shippers need to do to comply. In April, for instance, ISRI learned that China had created a new requirement for packaging “mixed loads” of metals, plastic, or paper scrap that’s scheduled to take effect June 1. As this issue went to press, ISRI was working to clarify exactly what China considers a mixed load.

Beyond their communication concerns, recyclers object that some trade controls or regulations can be difficult, even impossible, to implement commercially. For example, a country could demand inspections of every container of scrap entering the country, even if the shipper sent the material from multiple locations, Baxi says. The cost of doing business would escalate, as that would require that several inspectors travel to different loading points, he explains. “Legislation is always a problem to implement without increasing the cost to the buyer and seller,” he says. Further, some problems arise when the regulations mandate an unachievable ideal of product purity. “On the producing side,” Baxi notes, “it’s not possible to produce a bale of paper without one piece of plastic inside.” He believes that improvements in technology and infrastructure will help ensure that shipped material better matches what importing countries want, causing fewer problems and restrictions.

Trade Travails

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hich trade-regulation changes have disrupted the scrap industry the most? “It depends on the snapshot in time,” Horne says. To date, the initial round of licensing under China’s Administration of Quality Supervision, Inspection, and Quarantine in 2003-2004 tops Horne’s list of disruptions. Scrap shippers to China must have an AQSIQ license, which they renew every three years. When China implemented this policy, “there was an incredible amount of misinformation floating around,” Horne says, so ISRI decided to take action. “That’s when we actually started our relationships with China,” he says. “We traveled [there] to meet face to face [with Chinese officials] and get explanations so we could help our members navigate these new rules.” Horne names the first renewal of most of those licenses in December

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Security Shredding & Storage News Continued from previous page 2007 as the second-most-disruptive change to scrap exporting. “Again, there was a lot of misinformation, a lot of rumor. We had to intercede again with AQSIQ,” he says. Even when companies filed renewal applications on time, licenses were delayed significantly, he points out.

Voss agrees that the AQSIQ application and its renewal process have been “fairly onerous,” though “the actual methodology of the licensing is not that bad.” He also believes that the China Commodity Inspection Corp. inspections that AQSIQ requires may have caused some export delays—especially in the beginning. “In the early days, CCIC was haphazard because no one quite knew what CCIC was expected to do—nor did they—but then it seemed to settle down.”

China is not the only country that has caused major upheavals for scrap exporters, h oweve r. L a s t ye a r, t h e Indian government declared that all scrap was hazardous material—even materials on the Basel Convention’s green list, Voss says.

Green-list materials are those the Organization for Economic Cooperation and Development (Paris) has determined do not pose an environmental risk when properly handled. Thanks to efforts by ISRI and BIR, India seemed to reverse its decision in April. “We still haven’t resolved all the questions that revolve around that,” Horne says.

Miscommunication was a large part of that particular problem, Horne and Voss say. “We were constantly sending out e-mails [to Indian officials] and often had to clarify our points,” Horne says.

Ikbal Nathani of the Nathani Group of Cos. (Mumbai) flew several times to New Delhi on behalf of both ISRI and BIR, Horne and Voss say, as did ISRI President Robin Wiener. Still, “the government flipped on a couple of things,” Horne says. Verbal commitments conflicted with the written documents that followed. “It was pretty disruptive for a time—a lot of uncertainty,” he says.

Voss agrees. “It’s the lack of clarity in places like India that causes the most problems,” he says. “They suddenly bring in draconian legislation, and then it’s an uphill battle to try and get it withdrawn.” He gives another example: the country’s decision that traders couldn’t import scrap, a policy that’s “ridiculous because the Indian scrap business functions through traders, not consumers.”

information the document required had members quite upset and concerned, he says. Together, ISRI and BIR “were able to have the rules amended to protect the information,” Horne says, though he just heard from an ISRI member with an Annex VII concern that’s “related to that same issue.”

Europe also has become much stricter with its inspection procedures, Voss notes. Some countries require inspections of material exported to China even if the country does not have a CCIC office. That means added expense and time for the exporter because a CCIC inspector must fly in (usually at the supplier’s expense), which can take two to three days, he says. “It can have a dramatic effect on your profitability.” Along the same lines, the automated system for registering shipments leaving the United States has caused issues for some recyclers because it slows down the export process, Goodman says. The security and documentation procedure, which the United States implemented more than a year ago, shortens the window for when exporters must turn in paperwork and have containers at port, he says. Goodman says he understands it’s part of doing business in today’s more cautious environment. “It’s not necessarily a bad thing; it’s just an inconvenience.”

The fact that Europe controls scrap under waste legislation is another ongoing issue that affects exports. “We don’t have restrictions on exporters or importers of scrap per se, but we are always controlled under waste legislation and the inherent problems that brings with it—for example, the Annex VII document, which we are learning to live with,” Voss says.

That aside, the biggest problem with importing and exporting scrap in Europe is “we don’t enjoy a level playing field,” Voss says. Each sovereign nation within the EU individually interprets scrap legislation, and each interpretation can “differ dramatically,” he says. “Some countries are much easier and others more restrictive. Even in the United Kingdom, we have a different legislative body governing environment in England than we do in Scotland, even though we’re part of the same nation.”

Interpretations of regulations can vary even within individual countries. Voss recalls a customer that found itself in just that position. The customer had exported a substantial quantity of scrap to India, he recounts. The first time, the company did not have a problem. India accepted the material as scrap. The second time, however, Indian Customs refused to accept the material as scrap, Voss says. The customer fought the decision for eight months. Only the shipping line made money, Voss says, because the material stayed in containers for months. In the end, the customer lost a lot of money. “The reason was, purely and simply, because one individual customs officer had interpreted the import legislation in a different way than another,” he says. “That was in India, but it could have been in China—it could have been anywhere.” Further, he says, it could happen to anyone. “Luckily, we didn’t lose money, but it could have easily been us.”

“The fact that Europe controls scrap under waste legislation is another ongoing issue that affects exports. ‘We don’t have restrictions on exporters or importers of scrap per se, but we are always controlled under waste legislation and the inherent problems that brings with it’ ...”

Beyond China and India

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xport confusion extends beyond China and India, of course. Certain African countries recently banned the export of copper scrap to stop the theft of copper cable, a move that Voss likened to using a sledgehammer to crack a nut. “The easy answer is just to stop exports,” he says, but that will not stop cable theft.

Even developed nations can be “somewhat difficult” regarding trade regulations, Horne says.

About two years ago, the European Union issued Annex VII to its regulation 1013/2006, which governs shipments of waste and scrap. Annex VII specified that a certain document must accompany scrap shipments, but the amount of proprietary

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Navigating Export Regulations Continued from page 7

What’s a Company to Do?

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t’s a challenge whenever a scrap shipper has to deal with another country’s laws and regulations, Horne says, especially if the company doesn’t have someone on staff who understands the language of that country. It also helps to have someone “on the ground” in the destination country who can talk with government officials face to face, he says. Alter Trading has an office in Hong Kong, for instance, so it can “react quickly if things change in China,” Stein says. Alpert also receives information from his overseas offices as well as his agents, customers, trade associations, and the foreign government’s agencies. “We hear from different sources and often get different information [from each one], so we have to go through all that to find out what the truth is,” he says.

Shippers without their own international representatives often rely on business contacts for information from the destination country. “It comes back to people,” Voss says. “If you have good relationships with agents and customers, they keep you informed.” Scrap shippers can stay informed in other ways as well. Alpert says his company’s employees travel to different regions and attend conferences and board meetings to gather information. “We spend a lot of time, money, and energy to make sure we’re up to date on all the issues,” he says. Stein suggests reading Englishlanguage versions of newspapers from where your company does business, as well as visiting the Web sites of international and country-specific regulatory bodies and reading bulletins from trade organizations. “That’s how we do it.”

The best way to address export problems, of course, is to prevent them before they develop, Voss says. Sharing information about the industry with public officials from importing and exporting countries is a step in that direction, the recyclers say. If officials have a better understanding of the scrap industry, the laws and regulations they propose will reflect that understanding. In Voss’ view, “It’s the lack of understanding and the lack of clearly defined legislation that causes problems. That goes to the root of all our problems.”

Recyclers must acknowledge, however, that it’s their responsibility to educate government officials about the industry and its issues, Voss says. “We can’t expect them to come and learn about our business.”

Baxi concurs. “Good, friendly dialogue could sort out a lot of legislation,” and more such dialogue needs to happen at the grassroots level. Recyclers must work with legislators and regulators to create rules that make sense, serve the intended purpose, and are enforceable, he asserts.

Associations can play a key role in untangling export problems, these recyclers say. “Some of the major issues are better handled by the trade associations than by a single company,” Alpert says.

Voss agrees, asserting that recyclers “need the trade association strength behind them.” Associations bring “significant authority” to any trade-related issue, especially for smaller companies that don’t have representatives in other countries.

Many issues begin as isolated incidents, says Matt Heitmeier, an ISRI trade committee member and director of nonferrous marketing for Louis Padnos Iron & Metal Co. (Grand Rapids, Mich.),

and “often people try to deal with it themselves. It’s very important [that companies] document what the issues are and notify ISRI immediately” so the association can develop solutions for the problems that surface, he says. When that happens, ISRI and BIR quickly gather information to understand the issue and separate the truth from the rumor, Voss and Horne say. “Half the battle is getting the correct information,” Voss reiterates. As they gather information, the associations inform their respective members of the issue. In some situations, the associations form delegations—often working together—to meet with representatives of the specific country and get results. Baxi believes associations such as ISRI and BIR also should actively facilitate global trade by asking importing countries what the recycling industry can do to improve and give them the product they really want, he says.

The associations also must work with their own countries’ trade representatives and government officials, Voss says, to help them understand the industry—“who we are, what we’re doing, and what our problems are”—and bring them onboard so they can assist when needed. “You have to have a very good relationship with trade organizations and individual sovereign governments because they’re the ones that get legislation amended or looked at more closely,” he notes. “They’re the people with the power to get things changed.” Eurometrec has built solid relationships with the EU’s director general for trade, who now understands the scrap business, Voss says.

“If you show up in China or India with an official EU trade delegation or something coming from the trade commission, it has a lot more impact than if it comes even from ISRI or BIR.” In the United States, ISRI has worked extensively with the U.S. Department of Commerce and the U.S. Trade Representative to increase Chinese government transparency and to explain to Chinese officials the wide-ranging impact certain regulatory changes can have on the scrap trade, Horne says. The U.S. government even invited ISRI to participate in transparency talks as part of the first joint meeting of the U.S.-China Strategic Economic Dialogue in July 2009. ISRI also has worked with U.S. officials on trade with India, Malaysia, and Indonesia, Horne says.

The recycling industry has raised its profile with governments worldwide in recent years and forged solid relationships with trade and other officials, all of which has earned it a seat at the table on import/export issues. “Years ago, if we said, ‘We don’t agree with this legislation,’ we wouldn’t even get an interview,” Voss says. Today, the industry has influenced laws, policies, and regulations successfully, he notes. “When it comes to changing important legislation—particularly where scrap and waste are concerned—we are very effective.” He points to the industry’s relationship with China’s AQSIQ as a model example of its progress. “They listen to us,” he says. “They now know who we are and what our problems are.”

Goodman doesn’t recall many “deal-breaking issues—[ones] that slow down the art of trading or exporting materials,” he says. “They might pose scary moments, but in the long run they’re worked out over time through organizations like ISRI and BIR.” While applauding the industry’s progress,

8 Security Shredding & Storage News. September / October 2011

Making the Most of Your Resources

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SRI members who need help navigating export issues don’t have to go it alone. ISRI provides a variety of services, resources, and opportunities regarding trade matters, most of which are free to members. Take advantage of any or all of the following: The ISRI Weekly Leadership Update, an e-mail newsletter from ISRI President Robin Wiener, provides association news and information regarding current issues that affect the recycling industry, such as ISRI’s latest meetings with foreign trade officials or changes in export regulations.

ISRI’s Web site, www.isri.org, has a Trade tab in the left menu of the home page with information and resources about conducting trade in China, India, and other countries. The members-only resources on the site include relevant Chinese regulations and announcements translated into English, application forms for trade with India, and audio recordings of trade forums on specific commodities and topics such as international payment options, mitigating risk, and addressing contract disputes.

The annual ISRI convention and exposition offers several workshops about international trade, including some led by representatives from other countries and their government agencies, and the opportunity to network with scrap processors, traders, and consumers from dozens of countries.

ISRI’s trade committee meetings take place at all ISRI governance meetings. For more information, contact the group’s staff liaison, Scott Horne, ISRI’s general counsel and vice president of government relations, at the phone number and e-mail address below.

The ISRI staff can answer trade questions specific to your business. Call or e-mail Wiener at 202-662-8512 or robinwiener@isri.org, Horne at 202-662-8513 or scotthorne@isri. org, or Eric Harris, director of government and international affairs, at 202-662-8514 or ericharris@isri.org.

In addition, ISRI has held two trade missions—with plans for more—to help scrap recyclers address issues, grow international ties, and increase dialogue between the exporting and importing countries. The first mission went to China in September 2005, and the second went to India in January 2007.

Members can find information regarding both trips on the Trade section of ISRI’s Web site.

Voss remains realistic and vigilant going forward, knowing that other trade challenges are sure to arise and that “it’s very often two steps forward, three steps backward.” To succeed in exporting scrap, Heitmeier says, “you have to be flexible; you have to know your customers and their needs; and you have to be open to change. It always changes—that’s the one constant.”

Diana Mota is associate editor of Scrap. [This article previously appeared in the May/June 2010 issue of Scrap magazine. Reprinted with permission.]

Security Shredding & Storage News

CERTIFICATION FOR ELECTRONICS RECYCLERS Are You Up To Standards?

Continued from page 3 After the recertification audit, the cycle continues with yearly surveillance audits and a recertification audit every three years. If nonconformities are found at any stage during this cycle, these must be addressed by the recycler and then verified by the certification body.

CERTIFICATION PRICING

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o, how much does all of this cost? Well, the price of certification is based on the mandays of audit time plus any fees charged by the certification body or other parties. Audit time is based on: • Number of employees in the audit scope; • Number of locations in audit scope; • Maturity of the programs; • Complexity of audit scope; and • Risk and regulation level of the organization.

Since the complexity and risk of the recycler’s processes play a role in determining audit time, the more information an organization provides to the certification body at the beginning of the process, the better the quotation.

Processes that affect the complexity and risk (and thus, the cost) of a certification audit include: • Disassembly of electronic equipment; • Harvesting of working parts or components; • Repair or refurbishment of electronic equipment; • Sales of original or refurbished electronic equipment; • Shredding of computer hard drives or circuit boards; • Shredding of other electronic components (plastic, etc.); • Processing of any electronic components; • Processing of glass or batteries; • Metals reprocessing (furnaces).

There are also differences in pricing between the two standards. R2 does not have rules for audit time, and does not have usage fees, whereas e-Stewards® does have rules regarding audit time, and requires usage fees to be paid to the creators of the program, BAN. For both standards, audits are conducted as least annually as long as the certification is maintained.

We have provided some cost examples below, but it should be noted that these examples cover only the first two years of the certification program.

It should be understood that there is an on-going investment required to maintain certification.

A WORD ABOUT R2 PRICING

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ince there are no specific rules for R2 audit time determination, certification bodies will have to determine the time requirements for audits to this standard by comparing it with other standards. Because of this, audit times are likely to vary by certification body. R2 audit time will likely be less than that needed for e-Stewards®, since there are fewer requirements to audit. For comparison, audit time will likely be greater than for ISO 14001 environmental management system audits.

E-STEWARDS® PRICING

FINDING A CERTIFYING BODY

For the examples below we have used an audit day fee of $1,300 with no additional fees. These may or may not reflect the actual market average, as certification is competitive. This example does not include travel costs for auditors, which is charged by most certification bodies.

E-STEWARDS®: • AQA International, LLC • Orion Registrar, Inc. • SAI Global Certification Services Pty Ltd

Example #1 – A small recycler, non-profit, which does primarily disassembly and sales, with less than $1 million in sales.

First year - $4,150 ($3,900 to certification body, $250 to BAN).

Second year - $1,550 ($1,300 to certification body, $250 to BAN).

RESPONSIBLE RECYCLING PRACTICES (R2) • AQA International, LLC • Orion Registrar, Inc. • Perry Johnson Registrars, Inc. • SAI Global Certification Services Pty Ltd

Appendix B of the e-Stewards® standard provides these requirements for audit time: • Begin with the amount of time required for an ISO 14001 audit; • Add at least an additional 30% for e-Stewards®.

• If the organization is already ISO 14001 certified, reduce time by 50%.

Example #2 – A small recycler, primarily disassembly and sales, approximately $1.5 million in sales.

First year - $6,500 ($5,200 to certification body, $1,300 to BAN).

Second year - $3,250 ($1,950 to certification body, $1,300 to BAN).

Example #3 – A recycler with two locations, primarily disassembly, repair, and sales, approximately 10 million in sales.

First year - $16,750 ($8,450 to certification body, $8,300 to BAN).

Second year - $12,200 ($3,900 to certification body, $8,300 to BAN).

Example #4 – ISO 14001 certifier recycler, primarily disassembly and sales, approximately $7.5 million in sales.

First Year - $10,600 ($5,200 to certification body, $5,400 to BAN).

Second Year - $8,000 ($2,600 to certification body, $5,400 to BAN).

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side from price, it is also important for organizations to also consider other factors when selecting the standard to which they wish to be certified. There are some significant differences between the requirements of the two standards, as well as in the goals and proponents of the standards.

Companies who wish to pursue certification to one or both of these standards can do so by contacting the accredited audit providers below.

(trading as SAI Global)

(trading as SAI Global) • Systems and Services Certification, a Division of SGS North America Inc.

The list of accredited audit providers, complete with company details and contact information is available at http://anabdirectory.remoteauditor.com/.

ABOUT THE AUTHORS

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aul Burck is the President of Orion Registrar, Inc. Orion Registrar is an accredited certification body headquartered in the Denver metropolitan area. Orion has 10 other offices around the globe, and has issued approximately 6,000 certificates to clients in a wide range of industries. Orion’s clients range from one-person businesses to multinational organizations. Paul can be reached at president@orion4value.com or at 303-456-6010.

Penny Ouellette is the Program Development Director for Orion Registrar, Inc. She can be reached at Penny@orion4value.com or at 303-645-4023.

Additional information about Orion can be found at www.orion4value.com.

Security Shredding & Storage News. September / October 2011

9

In the News North Carolina MD Pays $40K for Dumping Records

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harlotte, NC-Dr. Ervin Batchelorm owner and operator of the Carolina Center for Development and Rehabilitation paid a $40,000 fine for dumping 1,000 patient files covering 1,600 people, including names, addresses, dates of birth, Social Security numbers, drivers’ license numbers, insurance account numbers, pictures, and medical histories, at the West Mecklenburg Recycling Center, says the state attorney general’s office. The records from the psychological testing and treatment facility were accidentally tossed by the doctor’s sons during an office move, according to Batchelor’s attorney.

Some of the records were from 2007-2009, and medical providers must keep patient records for at least six years before burning, pulverizing or shredding them to protect patient privacy, says state law. The affected patients have been notified by the attorney general’s office.

Hamby Posts on Future Trends in Security Capabilities

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pecial report-Steve Hamby, chief technology officer, Orbis Technologies, Inc., has posted about IT security trends on Huffington Post. He divides the past information security timeline into three eras: The first is the Physical Access Era before 1975 when IT security was based on physical access; if you had it, you were trusted with full access to all information. The Security Controls Era from 1975 to 2000 was brought about by IBM’s release in 1976 of resource access controls for different users or groups of users, using firewalls and other controls. The Internet, specifically e-commerce, led to controls including federated identity, single sign-on and encryption. Hacker attacks and viruses led to reactive controls such as anti-virus, spam-ware, intrusion detection, and so on, based on expected threats. Today, in the Security Risk Era, we have complex threats and a more strategic approach to security based on risk assessment focused on adversarial viewpoint.

In the future, security will evolve to deal with cloud computing and Semantic Web. While adversaries are implementing more complex and multifaceted attacks based on organizational knowledge, the two coming decades will pinpoint three key areas: Infrastructure-Enhanced Security, Enhanced Threat Modeling and Semantic Security.

In Infrastructure-Enhanced Security, security will be prevalent at all levels of IT infrastructure and architecture. Infrastructure will promote more comprehensive security solutions, while cloud computing reduces encryption and decryption times and promoting near-real-time analytics. It can now be seen affecting key strength assessment. It will thus enable better security by better asssessments of complex situations.

In Enhanced Threat Modeling, security can evolve to deal with complex attacks that look legitimate, like spear-phishing, with effects seen well after the attack. To protect against these, security threat modeling will evolve, and cloud computing analytics will provide capabilities to analyze large amounts of data to safeguard against larger threats.

In Semantic Security, security controls will be able to go beyond pinpointing single word threats with security controls that simulate human cognition and find untrusted communications in near real-time.

Semantic technologies will include software agents that act on behalf of end user, and some of this has already begun. These upcoming security enhancements will help IT organizations do a faster and more sophisticated job of safeguarding an organization’s information. For more, go to www.huffingtonpost.com/ steve-hamby/3-key-it-trends-that-will_b_936951.html.

TRICARE Records Stolen from Texas Car

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an Antonio, TX-Reuters.com reports that the personal and medical records of 4.6 million active and retired military personnel who receive care from the federal government’s TRICARE health provider were stolen from a data contractor’s car in mid-September in the form of back up-tapes from an electronic health care company that stored patient data from 1992 through September 7, 2011 of this year, according to Science Applications International Corp., which handles military health provider TRICARE’s data.

The data include Social Security numbers, addresses and phone numbers, plus clinical notes, laboratory tests, and prescription, but no financial data, such as credit card or bank account information. The tapes were stolen, probably as an opportunity crime, along with other items as they were “being transferred from one federal facility to another in compliance with the terms of their contract.”

SAIC is working with San Antonio police and a private investigator to recover the tapes, and reassuring patients that the “risk of harm to patients is judged to be low, despite the data elements involved …. Retrieving the data on the tapes would require knowledge of and access to specific hardware and software and knowledge of the system and data structure,” SAIC said, adding that it withheld information until it could “determine the degree of risk this data loss represented before making notifications” so as “to not raise undue alarm in our beneficiaries.”

SAIC and TRICARE, the HMO and medical service provider for U.S. active and retired military personnel, their families, and military reservists, are providing patients with emergency response centers for help with the security breach and placing fraud alerts on their credit reports. TRICARE stated that it is working with SAIC to “review current data protection security policies and procedures to prevent similar breaches in the future.”

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In the News Yale FTP Site Picked Up By Google Search Revamp

INSA Hacking Shows How Easy It Can Be

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ew Haven, Ct-According to yaledailynews.com, Yale University’s Information Technology Services office has found that the names and Social Security numbers of 43,000 Yale affiliates has been appearing in Google searches for a 10-month period after Google changed its search strategy in September 2011 to find and index certain file transfer protocol (FTP) servers. The Yale private FTP was one that was accessed, and it contained names and Social Security numbers of university workers in 1999, but no addresses, birth dates or financial information. Yale IT is now working to protect the compromised information. Yale announced the breach in August and notified the affected students, faculty, staff and alumni via post, establishing a response center and offering two years of free credit monitoring and identity theft insurance. Yale is working to improve information security, including better communication with Google and will outsource University email to Google.

There is no sign the information has been exploited. Google told Yale the file is no longer available but could not say if any or how many searchers accessed the file. Since Google included FTP servers, hackers created “Google dorking” for exploiting such files. Other search engines, such as Yahoo!, do not index FTP servers.

Ex-Anonymous Hacker Gives Security Advice on Cisco Website

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pecial report-The Cisco website recently ran an interview its Jason Lackey held with SparkyBlaze, a former hacker from Anonymous who says that company security is a mess because companies don’t want to spend the time or money on it, such as hiring good people and training employees correctly. The best way for businesses to improve the effectiveness of their information security include 14 tips that range from using “defensein-depth” and “a strict information security policy”; contracting with outside firms to audit corporate security; hiring system administrators who understand security, and encrypting data. Plus, look out for what information you are letting out into the public domain.”

Other best practices suggested by SparkyBlaze are an intrusion prevention system or intrustion detection system to detect unusual network activity, use of good physical security, and pay attention to employees’ security habits and let them know about the threat of social engineering attacks. While this is not new, and most attacks use tried and true methods like taking advantage of changes in security procedures, hacker attacks are getting bolder, with few warnings given.

For more, go to http://blogs.cisco.com/security/life-after-anonymous-interviewwith-a-former-hacker/.

ecently, the Intelligence and National Security Alliance published a Cyber Intelligence report about developing better cyber intelligence sharing, analysis and defenses against hackers. Two days after that, the INSA website was attacked and its 3,000-person membership list leaked, including names, emails and phone numbers of intelligence officials in the NSA, FBI, CIA, Pentagon and the White House, which were posted on Cryptome.

Crypotome’s John Young was proud to post the information about what he considers spies and says the hacking and posting do not violate the Intelligence Identities Protection Act as it only applies to insiders who spill secrets. The leak was confirmed by INSA. Many intelligence officials have written in to have their names and other personal information removed.

The use of private contractors by military and intelligence agencies makes it easier for sensitive information to get hacked.

Mergers & Acquisitions Activity on the Rise

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ew York-Openforum.com reports that the economy is starting to show growth in mergers and acquisitions, with the second quarter of 2011 recording more than 2,000 M&A transactions successfully completed at a value of over $260 billion and a first half total exceeding $620 billion across 4,100 transactions. The remainder of the year is expected to maintain similar levels. Most M&A transactions happen among smaller companies, with 93% of the 2,000 transactions that took place during the second quarter valued at less than $500 million. This increase has been laid at the feet of the extra cash that buying companies have and market fluctuations that keep companies from expanding existing operations. The cash isn’t earning a good rate of return so M&As are seen as a good way to put cash to use.

Survey Sees Businesses Wanting to E-cycle If Given Information

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ondon-Businessgreen.com reports that Computer Aid, a charity, conducted a survey that found one in five senior IT managers in the UK do not know if their company’s electronics end up in landfills after disposal.The100 respondents say they disposed of an average 542 computers per year, but only 65 were ‘confident’ or ‘very confident’ that the devices were not sent to landfills.

Some, 13% did not know about the Waste Electrical and Electronic Equipment (WEEE) directive, which outlaws the practice.

“It is extremely worrying that many of the UK’s largest companies are not able to guarantee that their equipment is not illegally dumped in landfill,” said Anja ffrench, director of communications at Computer Aid. But recycling IT equipment is the most popular disposal option indicated, with 28% recycling all and 41% more than half. And only 14% had “best practices in IT disposal,” sending all their working computers for reuse and recycling the remainder. Cost, data protection and contractual obligations to a leasing company were reasons for not reusing the devices. More would recycle if given guidance here, they said.

“Policies need to be in place to ensure more reuse of working equipment,” ffrench added. “Disposing of PCs after four years is a huge waste of resources since most computers will last at least double that.”

www.chachkagroup.com chachka@chachkagroup.com

Security Shredding & Storage News. September / October 2011 11

In the News RERA Act Introduced to Build E-waste Recycling

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ashington, DC-U.S. Representatives Gene Green (D-TX) and Mike Thompson (DCA) recently introduced new legislation, the Responsible Electronics Recycling Act of 2011, HR 2284, to stop sham U.S. “recyclers” from dumping electronic waste on developing countries and to promote recycling jobs at home. The bill is supported by environmental groups as well as electronic manufacturers (Dell, HP, Samsung, Apple, and Best Buy), all of which already have policies that prohibit the export of e-waste to developing nations. The bill also has bipartisan support, including sponsors Reps. Steven LaTourette (R-OH) and Lee Terry (R-NE).

“This is the most important step our federal government can take to solve the e-waste problem – to close the door on e-waste dumping on developing countries,” said Barbara Kyle, national coordinator of the Electronics TakeBack Coalition, a national environmental coalition which promotes responsible recycling of e-waste. “It will bring recycling jobs back to the U.S.”

The bill addresses the toxic exposures caused by e-waste dumping and primitive recycling operations in countries like China, India, Nigeria, and Ghana, which have been the subject of recent media exposés, and a scathing report by the U.S. Governmental Accountability Office (GAO).

“The states have been passing laws that are already increasing the amount of e-waste collected for recycling, instead of land-filling,” said Kate Sinding, senior attorney with the Natural Resources Defense Council. “Unfortunately, these laws can’t stop recyclers from simply sending our e-waste, and our jobs, to developing nations where improper handling threatens health and the environment.

But Congress can.”

Twenty five states have passed e-waste recycling legislation, but these laws do not ban e-waste exports, which is an international trade issue, and not the constitutional jurisdiction of the states. Only Congress has the authority to legislate this much needed restriction.

“This bill accomplishes two things: first, it

nicki@acmllc.us

www.southeastrecycling.com 12 Security Shredding & Storage News. September / October 2011

prevents hazardous material from being shipped where it will be mishandled and cause health and environmental damage; and second, it is a green jobs bill and will create work here in the U.S., processing these used products in safe ways,” said U.S. Representative Gene Green (D-TX). “I applaud HP for leading on this issue and their responsible recycling.”

“Each year, millions of tons of electronics equipment are discarded in the U.S. and shipped to developing nations for unsafe salvage and recovery,” said U.S. Representative Mike Thompson (D-CA).

“By carefully regulating the export of e-waste, this bipartisan legislation takes concrete steps to address a growing environmental and health crisis while creating good-paying recycling jobs here in the U.S.” Currently, electronic waste is exported to developing countries by many U.S. companies that claim to be recyclers, to be bashed, burned, flushed with acids, and melted down in unsafe conditions in developing countries. Eighty percent of children in Guiyu, China, a region where many “recycled” electronics wind up, have elevated levels of lead in their blood, due to the toxins in those electronics, much of which originates in the U.S. The plastics in the imported electronics are typically burned outdoors, which can emit deadly dioxin or furans, which are breathed in by workers and nearby residents.

“As an industry leader in product lifecycle improvements, HP does not allow the export of e-waste from developed countries to developing countries. We support the work of Rep. Gene Green (D-TX) and Rep. Mike Thompson (D-CA) to pass the Responsible Electronics Recycling Act, and we encourage other companies to join the effort and promote responsible recycling,” said Ashley Watson, vice president for HP. The bill establishes a new category of “restricted electronic waste” which cannot be exported from the U.S. to developing nations. Used equipment can still be exported for reuse as long as it’s been tested and is fully functional. Non-hazardous parts or materials are also not restricted. Other exemptions from the restrictions are: • products under warranty being returned to the manufacturer for warranty repairs; • products or parts being recalled; and • crushed cathode ray tube (CRT) glass cullet that is cleaned and fully prepared as feedstock into CRT glass manufacturing facilities “Not only is this bill good for the environment, but it gives a boost to small business recyclers and creates more green jobs. This is what both the industry and our customers want,” said Dewayne Burns, CEO, eSCO Processing and Recycling.

Similar legislation was introduced in the House in September of 2010, but it was too late in the Congressional session for the bill to advance. This time, the bill has added a provision for research into recycling and recovery of Rare Earth Metals from electronics. Export of electronics scrap to crude recycling operations in developing countries also prevents proper collection and recycling of precious and strategic metals.

“This bill is both a boon to the health of our environment and our U.S. economy. With it, we stop squandering critical metals resources, stop poisoning children and we create good recycling industry jobs in the USA at the same time,” said Jim Puckett, executive director of the Basel Action Network.

In the News CEOs Optimistic About IT Security Despite Challenges

Sunnking Grows with Acquisitions

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recent survey of 9,600 CEOs, CIOs and other corporate officers who oversee information security, the 2012 Global State of Information Security Survey sees optimism in this group, in spite of declines in funding for even basic security and growth in security threats. Some 43% of the respondents are confident their organizations can improve their security strategies. But the study itself concluded that “visibility into when and how the next cyber threat to information will emerge is poor, at best.” The authors said only about 13% of respondents should feel confident, mostly those who work for a company with a chief information security officer and chief security officer, those who had an overall information security strategy, those who measure and review policies and procedures over the past year, and those who employed dedicated security personnel. Another key was those who expected information security spending to increase at their company.

Global standards such as the PCI Security Standards and Sarbanes-Oxley make respondents more aware of threats and thus more optimistic, says one of the survey’s authors. A 2011 survey showed use of security safeguards–from code detection tools to intrusion-prevention tools–have jumped by as much as 13%, fostering confidence, or even a false sense of security.

Some 43% of respondents said that they have an effective strategy and are proactive, only 16% said they could deal with an “advanced persistent threat,” now more likely to come in surreptitiously. Respondents are also less likely to require third parties to comply with privacy policies, but that number is expected to rise as budgets tighten. North American responses found 31% saying security spending would increase in the next year. For more, go to http://www.pwc.com/ gx/en/information-security-survey.

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ochester, NY-Electronics recycling firm Sunnking Inc. has completed its purchase of Sunnking Associates, creating a unified electronics recycling company with three sites in Monroe and Erie counties and headquartered in an 80,000-square-foot facility in Brockport, reports buffalonews.com. This increases its regional market share and positions it to add more jobs and grow beyond western New York State. Sunnking was founded in 2000 and leads in “e-cycling” regionally, as the first e-cycler in the state, and one of the first nationally, to receive the Responsible Recycling Certification from the U. S. Environmental Protection Agency. Sunnking Associates started in April 2006 as an equal joint venture between Sunnking Inc. and Integrated Recycling. It operated as a consolidation and collection point for Sunnking Inc. By combining, officials hope to build a stronger platform for future expansion and development. Sunnking now has operations in Buffalo, Rochester and Brockport, specializing in collecting, refurbishing, reselling and recycling electronic products from residential and commercial suppliers throughout the state and surrounding areas.

www.tryco.com

Healthcare Security Breaches Common among Employees, Says Survey

tryco@midwest.net

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os Altos, CA-A Veriphyr Survey of Patient Privacy Breaches questioning 90 healthcare IT managers found that a large majority of healthcare organizations, 70%, reported a breach of personal health information over the past year. Most breaches were committed by employees, with 35% looking at medical records of fellow employees and 27% viewing records of friends and relatives. 30% of the breaches were found in 1-3 days, 12% within a week, and 17% within 2-4 weeks. Alan Norquist, CEO of Veriphyr, says the employee breaches surprised him the most about the report. The top concern of compliance officers should be the few employees who misuse legitimate access, says Norquist, adding it is often easier to snoop electronically than with paper records. Norquist believes the focus should be on tools that monitor employee access to data, recognizing that legitimate, timely access is essential.

Other findings of the report: • 79% of respondents were “somewhat concerned” or “very concerned” that their existing controls do not enable timely detection of breaches; • 50% feel they do not have adequate tools for monitoring inappropriate access; and • 47% hope to invest more in improving detection and response capability in the next 12 months.

The report noted: “While respondents agreed that senior management and IT were supportive of and listened to recommendations for improvement in compliance and security efforts, the timeliness of response to requests for improvement (particularly from IT) was an important factor in determining whether respondents also indicated satisfaction with tools for monitoring inappropriate access to PHI. In turn, respondents who indicated strong satisfaction with their monitoring tools also tended to report fewer breaches of PHI and faster resolution times. The reverse is also true: respondents who indicated dissatisfaction with their monitoring tools tended to report more breaches and longer resolution times.” For more, go to http://blog.veriphyr. com/2011/08/over-70-of-healthcare-providers.html.

www.CertifiedElectronicsRecycler.com

davidwagger@isri.org

Security Shredding & Storage News. September / October 2011 13

Product/Equipment Profiles

Shred-Tech® Introduces the MDX-1 Mobile Shredding Truck

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hred-Tech’s® MDX-1, a fully automated dual mode ultra high security Mobile Shredding Truck, will be unveiled at the Joint European Conference in London, on November 7-9, 2011.

The patent pending MDX-1 can switch on the fly from Regular to Ultra High Security shred mode in just 4 seconds with the press of a button. In Standard Shred Mode the shredder achieves up to 2,950 Kgs/Hr of throughput. In Ultra High Security Shred Mode the shredder produces ultra small shred particles, which meet DIN 3 specifications, while having a throughput of up to 1,100 Kgs/Hr. The MDX-1 is available in both Ground Tip and Side Lift formats and with 15 and 18 tonne chassis. Other features include the proprietary Gripper Tipper® (Ground Tip Only) patented retractable bin tunnel loading system and the state-of-the-art Plus 1® micro-control system, which allows for remote system diagnostics and real time video of the shredding process. The MDX-1 also includes Predictive Idle which increases fuel savings and reduces shredder and engine hours by sensing the shredder loads and shutting down the system once shredding is complete.

For more information please visit www.shred-tech.com or call 1-800-465-3214.

ShredSupply & UNTHA Introduce the Data Annihilator

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hredSupply & UNTHA recently combined resources to develop the Data Annihilator mobile data shredder. The Data Annihilator uses a heavy duty UNTHA RS-30 four-shaft shredder and is designed to handle hard drives, CDs/DVDs, laptops, smart phones and other electronic devices.

The Data Annihilator product line comes in three different series, the DA70, DA-80 & DA-90. All three models offer standard features like the UNTHA RS-30 four shaft shredder with screen interchangeability. Customer specific options are available upon request.

The Data Annihilator will continue making its way up the Eastern Sea board where it will be displayed at UNTHA’s open house in October. UNTHA has recently expanded into a larger facility in Hampton, New Hampshire in response to increased growth in the North American market.

For more information visit www.shredsupply.com for further information on the Data Annihilator and when it may be coming to a city near you.

14 Security Shredding & Storage News. September / October 2011

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Security Shredding & Storage News. September / October 2011 15

In the News Alabama Man Bids on Storage Locker and Wins Medical Records

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lorence, Alabama-Bobby Roberts recently bid on the contents of a storage locker whose renters had defaulted on the rental payment, but he didn’t realize he’d uncover a trove of private medical and financial information. Some 20 boxes stored at Climate Guard Self Storage in Florence were filled with personal medical records from Digital Diagnostic Imaging Inc, dated from 2002-2009, including medical records, Social Security numbers, addresses, phone numbers, insurance information and driver’s licenses. Digital Diagnostic Imaging, which performed ultrasound, EEG and others tests, closed in December 2009.

The company’s president died and vice president Steve Vickery had a heart attack at that time, so an acting president was charged with closing and moving the records to the company’s main office in Russellville. The rental had been used for superfluous records, and the acting president maintained it as a storage facility, eventually stopping paying the rent. The Alabama State Board of Medical Examiners says medical practices which dissolve must assure active patients they can transfer their medical records so patients still have access to their records.

Roberts said he didn’t destroy the boxes because of the Health Insurance Portability and Accountability Act, and contacted Vickery, who now plans to send the records to Russellville.

SEC Puts Freeze on File Shredding Due to Whistleblower Case

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ashington, DC-An ongoing Securities and Exchange Commission whistleblower case involving the agency’s recordkeeping, focuses on the destruction of documents it should have kept, resulting in damage to Wall Street investigations and investigations into the SEC’s procedures and staff.

Recently, the SEC changed the implementation of some policies that for a long time have required document-purging. The SEC issued a memo to Division of Enforcement staff telling them to stop existing record-destruction procedures for closed cases, until further notice. An SEC spokesman that they have been working with the National Archives and Records Administration on a new policy for records retention, and have determined to suspend the current policy out of an abundance of caution until a new policy is in place. The directive came after months of internal arguing about document-destruction.

Patient Data Posted Online in Major Breach of Privacy

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16 Security Shredding & Storage News. September / October 2011

alo Alto, CA-A commercial website, Student of Fortune, has posted for almost a year data for 20,000 emergency room patients at Stanford Hospital, including six-month’s worth of names and diagnosis codes, account numbers, admission and discharge dates, and billing charges due to a security breach, reports nytimes.com. A detailed spreadsheet from a billing contractor, Multi-Specialty Collection Services, was posted on the site.

Stanford had concluded that no employee of Stanford Hospital has done anything incorrect.

Multi-Specialty Collection Services L.L.C. created the spreadsheet as part of a billing-and-payment analysis for the hospital. The hospital immediately suspended its contract with the company and got written certification that previous files would be destroyed or returned securely. Chegg, which now owns Student of Fortune in August, said the site did not know the data had been posted until informed by Stanford. The poster could not be identified.

The breach was discovered by a patient and reported to the hospital in August, but it went undetected for an unusually long time, underlining the vulnerability of data shared by so many contractors. Data did not include Social Security numbers, birth dates, or credit-card numbers, but the hospital is offering free identity protection services and taking aggressive steps toward better security. It also notified state and federal agencies.

The Department of Health and Human Services says personal medical data for more than 11 million people has been displayed wrongly in the last two years.

In the News VA in Kentucky Sees Breach of 1900 Records by Staffer

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exington, KY-Lex18.com reports that a staff member at the Lexington Veterans Affairs Medical Center took home patient files, slides, images and data on approximately 1,900 veterans, including names, last four digits of Social Security numbers, medical diagnoses and dates of birth on his laptop computer without permission. The medical center’s investigation determined the staff member did not follow established privacy and information security requirements. Veterans whose personal information was breached were notified and credit protection services were given for one year. It was an isolated act and information was not seen to be used maliciously.

The VA provides annual privacy training to all employees and works to protect patient information.

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• Informative symposium program Hear solutions to your business challenges

urry County, NC-A box of “sensitive and confidential” residential records sent by the state Department of Health and Human Services that the Surry County Department of Social Services had thought lost was found at the Dobson Post Office, reports myfox8.com. The records included names, social security numbers and financial data and are used to verify information on applications for public assistance, such as Medicaid or Food and Nutrition Services. DHHS had sent letters to those affected with information on how to be protected from possible identity theft or scams. The missing records were from the month of July. The document delivery had been by a state courier, but Black said it was switched to postal delivery a couple of months ago without his office receiving notification of the change. DHHS said in a statement it is trying to set up a system to send the data electronically.

• Showcase of new products View the newest advancements • Insightful facility tours See how it all works for yourself

For more information on this exciting industry event, please contact Arnie Gess Call: +1.403.589.4832 Email: arnie.gess@cwre.ca Visit: www.cwre.ca

Register Today!

www.cwre.ca/ADS6 05/11SSSN

www.nexgenbalers.com

Info Request #156

Security Shredding & Storage News. September / October 2011 17

In the News Federal Recycling Mandates in Early 2012 Could Change Face of E-waste Industry

W

ashington, DC-The federal government dumps half a million computers and even more other electronic devices annually, so the Environmental Protection Agency and General Services Administration are considering new procedures for contract recyclers as a way of boosting the $5 billion e-recycling industry and transforming it, reports washingtonpost.com. The agencies plan to decide in 2012 about third-party certification for electronics recyclers under the National Strategy for Electronics Stewardship, debuting this summer. The GSA will propose changes to procurement regulations in February, while the EPA will lead the evaluation of the two certification standards.

The U.S. electronics recycling industry could double to 60,000 people if consumers follow the federal mandates that are for recycling, says an analyst at International Data Corp. in Framingham, MA. At issue are two different approaches: The E-Stewards program of the Basel Action Network bans exports of electronics waste to developing countries. Another, less stringent, standard, Responsible Recycling, or R2, is the brainchild of the Institute of Scrap Recycling Industries. It includes business operations, revenue and profits, as well as a company’s environmental record, as a basis for certification.

Major OEMs have self-regulated e-waste processing due to both public relations and environmental risks. Dell has had e-waste disposal programs since 2004 and has banned exports by its third-party recyclers.

The company sees no huge difference between the two approaches to e-waste recycling.

The EPA has no position on the above but says any government recycling mandate will have an industry wide impact. The plan from the EPA and GSA as presented does not totally ban exports of electronics waste.

Meanwhile, state laws, including those in Maine, California and Connecticut, complicate the situation with diverse approaches to collection.

attention: readers!

www.dun-rite.com

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.

Info Request #143

CRESSWOOD Adding Value with Versatility & Assured Results!

"We’re sold on the Cresswood’s versatility. It give us the ability to produce custom shred sizes and meet smaller particle specs with screen selection - and that’s a great selling point with accounts. We’ve been able to greatly expand our niche markets for secure product destruction."

"From day one, Cresswood has provided outstanding service and support. And the up-front training provided by the Service Team has set a new standard for excellence, as far as we’re concerned."

Secure Records Management | Document Destruction Services

"In terms of particla size, the Cresswood gives TPE everything we need to abide by NAID standards in one pass. We’re able to assure security for our clients, and blast the shred out quicker. The question we keep asking ourselves is - why did we wait so long to get our Cresswood!."

Jeff Prunzik President/Owner, (pictured, on left) Dan Prunzik Vice-President/Owner, (pictured, on right)

The Paper Exchange, est. 1996, is Pittsburgh’s largest independentlyowned secure shredding company. NAID AAA-certified, TPE provides customized data protection, storage, recycling, and secure destruction solutions to clients across the region.

A Cresswood HF-7870-1150XR Shredder/Grinder is the core technology for off-site secure shredding and specialty services at The Paper Exchange.

Fully-integrated, the Cresswood ‘shred & bale’ system delivers processing versatility, custom-output capability, and optimized throughput within an ultra-compact facility footprint at TPE.

Cresswood Offers:

Single-Shaft, Low-Speed, Eco-Friendly Shredders and Turnkey Systems for the Document Storage and Secure Destruction Industries - Paper, Plastic, Fabric, E-Scrap

Info Request #134

18 Security Shredding & Storage News. September / October 2011

800-962-7302 www.cresswood.com

55 West Lincoln Highway, Cortland, IL 60112

The challenges you face in your production environment are unique, which is why you shouldn’t have to settle for an off the rack solution. At WEIMA, our experienced staff takes the time to analyze your individual needs to provide a custom, reliable and efficient shredding, grinding or briquetting solution guaranteed to perform in even the most challenging environments. Contact WEIMA today to learn more.

CALL TODAY 888-440-7170 // WEIMAAMERICA.COM // INFO@WEIMAAMERICA.COM www.weimaamerica.com info@weimaamerica.com Info Request #131

Security Shredding & Storage News. September / October 2011 19

www.jakeconnorandcrew.com

Info Request #105