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Volume 7, Issue 4

&

July / August 2010

Security Shredding Storage News

Official Publication of the Security Shredding & Paper Recovery Markets

Inside This Issue 7

Workplace Privacy, Data Management and Security Report

8

Take Your Business Networking to a New Level

Shotgun Capital Advisors Survey Takes Aim at Document Destruction Industry

D

10 PRISM International HIPAA Rule Comment Campaign Underway

By P.J. Heller

espite the economic downturn, the document destruction industry predicts strong revenue growth — in some cases of more than 20 percent — this year, according to an annual industry survey. “Revenue growth expectations for 2010 are in the 12.8 percent range and are in line with 2008 growth when you factor in filling the hole left behind by the fall in paper prices,” the report said. “Shredding service revenue (recurring and purge services) in 2010 is expected to grow at double the pace set in 2009.” “This is trending toward becoming a banner year for the industry,” noted Jim McGuire, president of Shotgun Capital Advisors, the firm which conducted the survey. At the same time, however, more than half of the respondents expressed concern about increasing competition from companies offering what was described as “insane discounts” on shredding services in the hope that they would profit when the price per ton of shredded paper increases.

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“Many of our survey participants express frustration with this short-sighted, cut-throat competitive strategy,” the survey noted. One unidentified respondent described such competitors as “price jockeys who only ride when paper prices increase.” “No matter what we say or do, price seems to be all that the customer cares about,” noted another respondent. “It seems that everybody is selling price, and we have lost jobs for that reason.” The second-most voiced concern according to the survey was growing competition from national firms, which one unnamed respondent claimed was leading to a “Wal-Mart mentality in the shredding community.” “Low pricing from the majors trying to acquire market share. It is devaluing our industry,” he said.

A general concern about the economy was another issue that was cited. “We did see a rise in compliance-related concerns, as a myriad of new legislative initiatives such as the HITECH Act and Red Flags Rule have some players feeling overloaded with schoolwork to stay educated,” the survey added. Other concerns cited ranged from tightening budgets and the paperless office to uncertainty over fuel prices.

The report by Shotgun, a Southlake, Texas, company, noted that the industry fared well in 2009 even with a slumping national economy and decline in paper prices. “We were extremely surprised at how well the top performers managed to grow in ’09 versus ’08 despite the tough economic times and the large hurdle to overcome with the drop in paper prices,” McGuire said. “2009 tested the recession resiliency of the document destruction industry, with volatile recycled paper prices early in the year concealing the growth rate of many industry participants,” he noted. “A number of respondents to our survey reported double-digit or better 2009 revenue growth, an outstanding accomplishment given the economic environment.” Companies that continued to push sales and marketing greatly benefited from those efforts, allowing them to capture more opportunities, McGuire noted. “The top performers refused to let off the accelerator from a sales and marketing spend standpoint,” he said. Those companies either increased spending on marketing or maintained it at the same level as a year earlier. In contrast, some companies cut their marketing expenditures

Continued on page 3


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Security Shredding & Storage News

Shotgun Capital Advisors Survey Takes Aim at Document Destruction Industry Continued from page 1 due to the economic conditions — going into what he said was “sort of a survival mode” — and saw business decline. “The lesson is you cannot starve yourself into prosperity,” McGuire said. In the 2009 survey, respondents had predicted increased revenue growth but many expected to see their margins decline or remain flat from a year earlier. The latest survey revealed that revenue growth in 2009 from shredding services was strong coupled with a double-digit decline in recycling revenue due to lower prices per ton of recycled paper. Most of the responses, 83 percent, were from U.S. businesses, with a smattering of firms from Canada (9 percent), Asia Pacific (6 percent) and Europe (2 percent). Overall, respondents averaged 8.3 years in the document destruction business; 25 percent of respondents had 11 or more years experience while 45 percent had less than five years in the industry. “Overall, the outlook for the industry remains robust, with a majority of participants expecting to increase investments in their business to accommodate 2010 growth,” the report said. Nearly 65 percent of respondents said they expected to add shredding trucks or equipment this year. They also hinted at adding employees and increasing sales and marketing expenditures. More than half the respondents viewed community shredding events as an effective marketing tool. Some said they planned to increase their focus on social networking sites, such as Twitter, Facebook and Linkedin, to boost sales. “The jury is still out on whether social networking sites are a good vehicle for generating sales,” McGuire said. Slightly more than half of the respondents (52 percent) said they do not use social networking sites to promote business; 11 percent of the respondents said they found such sites “extremely effective.” “From a marketing perspective, the secret sauce for sales includes customer referrals, a presence on the internet, truck graphics, and community shredding events” McGuire said. As it did the previous year, the survey consisted of 55 questions. Those questions touched on company history, financial performance, operations, sales, marketing, employees, customer satisfaction and issues being faced today and in the future. For 2010, a majority of respondents, 74 percent, said they expected recurring service revenue to increase by at least 10 percent. Of those, 39 percent predicted that revenue would grow by 20 percent or more, while 3 percent expected a decline and 7 percent predicted no growth. . Revenue growth predictions for purge services were even higher, with 67 percent of respondents

expecting increases of at least 10 percent and 39 percent of those predicting revenue increases of 20 percent or greater. Eleven percent predicted no growth and 2 percent said they expected purge revenues to decline. I n 2 0 0 9 , ave rag e recurring service revenues grew 8.5 percent while purge services revenues increased 6.5 percent, according to the survey. “A good number of participants were immune to the economic downturn — over 25 percent of respondents reported 2009 recurring revenue growth exceeding 20 percent, while 19 percent reported purge service revenue growth above 20 percent,” it said. McGuire said shredding companies are now experiencing a notable rise is purge demand and volumes from customers that opted to postpone purge services during tough times. “In many cases, this backlog of material has maxed out office storage space creating a safety hazard. That’s when they pick up the phone and call their shredding vendor.” McGuire said. The report also discussed the impact of the rapid crash in paper prices in late 2008 and subsequent price improvements in per ton paper prices. Those improvements saw 2009 prices jump nearly 300 percent per ton, the survey reported. The drop in paper prices, however, did not result in a large number of shredding businesses going out of business, as was anticipated. “There weren’t nearly as many people closing up shop as the industry expected,” McGuire said. He said some industry veterans would have preferred to see paper prices remain low for another six months in order to reduce competition. The recovery of paper prices into the second quarter of this year prompted what the survey called “Crazy Eddies” to enter the market offering bargain basement shredding prices, “speculating that margin will come from recycling sales at higher prices per ton.” “If the paper pricing stays the way it’s going, this will force more startup shredding companies to offer free shredding,” warned one respondent. “Don’t count on recycling revenues,” added another. “Remember, we are in the secure destruction business — price accordingly. ‘Giving it away’ is stupid, short-range thinking. If people are only interested in ‘cheap,’ they are not a good customer because ‘cheaper’ is just around the corner, and you just reinforced the false virtue that ‘cheaper is better.’” Even with concerns that increasing paper prices might bring in more competitors and negatively impact the industry, higher paper prices were also credited by respondents for what could be “remarkably strong” margins in 2010. More than half of the respondents expected

Continued on page 4

PUBLICATION STAFF Publisher / Editor Rick Downing Contributing Editors / Writers Jim Booth • P.J. Heller • Jean Kelley Joseph Lazzarotti • Robert J. Rua 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 2010 by Downing & Associates.

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Security Shredding & Storage News

Shotgun Capital Advisors Survey Takes Aim at Document Destruction Industry Continued from page 3 margins to improve by at least 10 percent while 34 percent of those predicted improvements of 20 percent or more. Six percent expected margins to decline with another 19 percent anticipating no growth. Participation in the survey was voluntary. It was conducted by Shotgun Capital Advisors, LLC a merger and acquisition advisory firm specializing in the document destruction industry. While the economy will be a major factor in how the industry performs this year, the report noted that the industry has fared well in the past. An unknown factor will be the price of paper. “As long as businesses are grown based on the profitability of the service revenue line alone without factoring in or discounting for higher paper prices, the industry is going to continue to produce solid operating margins,” McGuire predicted. “The document destruction industry has enjoyed impressive growth over the past decade, fueled by increased focus on identity theft related crimes, numerous legislative achievements in support of privacy protection, and media focus on enforcement actions imposed on violators,” the report added. “The industry has successfully upgraded its image away from ‘custodial and waste services’ and into ‘business security services.’ Customers view their shredding vendor as an indispensable part of their information protection safeguards.”

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Security Shredding & Storage News

Workplace Privacy, Data Management & Security Report

Shredding and Data Destruction Companies A HIPAA-Covered Entity’s Best Friend

W

By Joseph Lazzarotti

e r e c e n t ly r e p o r t e d t h at t h e Department of Health and Human Services (HHS) is issuing proposed regulations to implement statutory amendments under the Health Information Technology for Economic and Clinical Health Act (the “HITECH Act”). These proposed regulations contain a number of important points to think about for HIPAA covered entities (and business associates), even though these rules are in proposed form. One is avoiding HIPAA violations involving “willful neglect,” which under the HITECH Act will require a formal investigation and civil penalties. To date, the Secretary of HHS has attempted to resolve complaints and certain violations by informal means, as required by § 160.312 of the current regulations. A significant change to the HIPAA enforcement scheme in the HITECH Act requires that if a preliminary investigation of the facts of a complaint indicates a possible violation due to willful neglect, the Secretary is required to commence a formal investigation. If the formal investigation finds a HIPAA violation involving willful neglect, the Secretary must impose a civil money penalty.

What is “willful neglect”?

W

illful neglect is defined at § 160.401 as the “conscious, intentional failure or reckless indifference to the obligation to comply with the administrative simplification provision violated.” The term not only presumes actual or constructive knowledge on the part of the covered entity that a violation is virtually certain to occur, but also encompasses a conscious intent or degree of recklessness with regard to the entity’s compliance obligations.

So what does that mean, what are some examples?

T

he proposed regulations provide the following examples: 1. A covered entity disposed of several hard drives containing electronic protected health information in an unsecured dumpster, in violation of § 164.530(c) and § 164.310(d)(2)(i). HHS’s investigation reveals that the covered entity had failed to implement any policies and procedures to reasonably and appropriately safeguard

protected health information during the disposal process. 2. A covered entity failed to respond to an individual’s request that it restrict its uses and disclosures of protected health information about the individual. HHS’s investigation reveals that the covered entity does not have any policies and procedures in place for consideration of the restriction requests it receives and refuses to accept any requests for restrictions from individual patients who inquire. 3. A covered entity’s employee lost an unencrypted laptop that contained unsecured protected health information. HHS’s investigation reveals the covered entity feared its reputation would be harmed if information about the incident became public and, therefore, decided not to provide notification as required by § 164.400 et seq. In addition to having actual or constructive knowledge of one or more violations, the covered entities in the examples above, particularly Example 1, failed to develop or implement compliant policies and procedures and, thus, demonstrated either conscious intent or reckless disregard with respect to the compliance obligations under HIPAA. Based on the proposed regulations, covered entities can no longer expect the velvet hand of the regulators to resolve a violation informally in all cases. Covered entities that fail to have policies and procedure and make a good faith compliance effort likely will find themselves subject to mandatory formal investigations and penalties. Covered entities like the one in Example 1 above might want to consider certain precautions, including: • maintaining a record retention policy, • maintaining media re-use policy, • maintaining a data destruction policy, • maintaining an e-discovery policy, and • and engaging a good data destruction/ shredding company. Joseph Lazzarotti is an attorney with Jackson Lewis, LLP in White Plains, New York. To view additional articles from their blog, please visit www.workplaceprivacyreport.com.

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Security Shredding & Storage News

Take Your

Business Networking to a New Lev l

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By Jean Kelley

or any business, effective networking is an essential component to success. Today, though, the landscape of business networking has changed dramatically. No longer does business networking exclusively involve standing in a crowded room of people, meeting and greeting with total strangers, and exchanging numerous business cards. While such traditional networking is still valid and effective, e-networking done via business social networking sites is just as valuable. Regardless of what anyone thinks about social networking sites, the fact is that they are here to stay. Sure, they’ll evolve over the years and will likely look very different than they do today, but ultimately they’ll still exist. And while purely “social” social networking sites can have a business aspect to them, it’s important for business owners, executives, and managers to have a strong presence on the tried and true business networking sites (example: LinkedIn). Why? Because your clients, customers, colleagues, and others look to business networking sites for evidence of your character. For example, when a prospect is thinking about doing business with you, he or she will likely do a social media search for you. Never before did average people have the ability to research anyone or any company they wanted. While in the past background checks were expensive and time-consuming, these days a few mouse clicks and keystrokes can pull up a goldmine of information. That’s why you and your company need to be on business networking sites…and you need to be using the e-networking sites effectively. The following suggestions will help you become a savvy e-networker with a positive online presence.

· Don’t be a contact collector; be a contact cultivator.

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The goal of any networking endeavor is to build relationships, not just to collect business cards. E-networking is no different. If you’ve been on any business networking sites, you’ve likely seen people with 500+ connections. At first you may think, “Wow, that person sure knows a lot of people.” But does he or she really know those connections? Or is this person just collecting contacts? Rather than accepting and sending invitations to anyone, be mindful of whom you connect with. When you do make a connection with someone, look over his or her profile and then add a personal note to the person where you indicate a shared interest, club, affiliation, etc. For example, you could respond to someone by writing, “I see

8 Security Shredding & Storage News. July / August 2010

you attended Northwestern University (or are a member of the Miami Business Association, or have a pet beagle…). I have a similar interest in that I (also attended Northwestern…am a member of the Tulsa Business Association…. have a dog named Snoopy…etc.). You get the idea. Find a shared interest to build upon that will make you stand out and open the lines for real communication later.

· Have a clear purpose. Many people think they’re going to get business from being on social media sites. While you can get business from your online activities, this shouldn’t be your ultimate purpose. Rather, your purpose should be to make people aware of who you are by sharing your expertise. Any business networking site is a place for you to give, not just to get. So to get business from your e-networking activities, you have to contribute meaningful content. You can find many groups to belong to that have strong conversations going. If you post something in the discussion that’s smart and useful (good content), then chances are someone will ask to connect with you. Now you have more people to share your message with. Other examples of good content are asking thought-provoking questions, posting a motivational quote, and sharing a business tip. No matter what you post, if you get a reply, acknowledge the person for their feedback or contribution. Just as you can’t take people for granted in the brick and mortar world, you can’t take them for granted in the virtual world either. Everyone who reacts to your content is a potential relationship and you need to treat them as such. When you’re replying to a question someone else poses, try to answer in the early part of the conversation rather than after 100 others have already replied. You want your answer to be in that first page of results. That way anyone who replies after you sees your photo and business information every time. With that said, pay close attention to what the question is and don’t answer anything capriciously. Always remember that your reply is posted forever.

· Add some personal flair to your profile. Even though this is business, it’s okay to put some personal flair to your profile. After all, no one is all business all the time. Chances are you have some interesting hobbies or other areas of your life that people find intriguing. For example, maybe you collect antique cars, breed prize-winning poodles, tend a vineyard in your backyard, or have the city’s largest yo-yo collection. These are interesting tidbits of yourself that you can weave

Continued on next page


Security Shredding & Storage News Continued from previous page into your profile to make you appear more “real.” Additionally, look at the tools and widgets the business networking sites make available to you and use them. You can do such things as post your reading list, link your blog, upload your Twitter feed, and many others. People can get to know you by these additional applications. Even better, they’re very user-friendly and easy to integrate into your business networking persona. Jean Kelley is president and founder of Jean Kelley Leadership Consulting and Jean Kelley Leadership Alliance. She works with corporate leaders all over the world to achieve their highest potential. With her Alliance, Jean has helped more than 500,000 businesspeople enhance their careers. She is the author of “Dear Jean: What They Don’t Teach You at the Water Cooler,” and “Get A Job; Keep A Job Handbook.” For more information, please visit www.jeankelley.com.

Would you like more information about the products or services advertised in this publication? Simply complete the form located between pages 8 & 9 and fax it to us today at 440-257-6459.

NAID Releases Initial Study Materials for New Professional Accreditation

O

ver the past year the National Association for Information Destruction (NAID) has been developing the industry’s first professional accreditation program, now officially and legally known as the Certified Secure Destruction Specialist (CSDS)®. This personal accreditation will serve as the premier designation for secure destruction industry personnel, and will test for knowledge in such areas as regulatory and legislative compliance, risk management, physical security, information security principles, and destruction systems and service operations and safety—among others. “As our industry matures and secure destruction companies continue to operate in an increasingly regulated environment, under increased public scrutiny, we will continue to see consumers demand more of service providers,” said NAID Chief Executive Officer Bob Johnson. “One of the ways to reassure consumers that a service provider is capable of assuming the risk associated with handling data is by having qualified and knowledgeable personnel who have been tested on their industry knowledge. NAID’s new Certified Secure Destruction Specialist® program is the only accreditation program specific to our industry, and will help provide that reassurance for consumers.” Initial study materials and information regarding training opportunities can be found on www.naidonline.org. Further materials and training opportunities will be published in the coming months, along with test dates and locations. Testing for the CSDS® will begin in January of 2011.

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Security Shredding & Storage News Redishred Acquisition of Proshred Has Franchisees Crying Foul

PRISM International HIPAA Rule Comment Campaign Underway

R

edishred Capital Corp recently announced the acquisition of Proshred Albany for an aggregate price of $380,000, reports finance.yahoo.com. The acquisition bolsters Redishred’s position as a leading provider of secure destruction services in Upper State New York. The company will operate Proshred from its Syracuse location. Redishred CEO Robert Crozier says the addition of Proshred Albany will create many operational synergies. Crozier says Redishred will host a number of community shred events in Albany in the near future. The acquisition prompted three franchisees that operate Proshred facilities to file a complaint against Redishred in the United States District Court of Southern District of New York. The franchisees are accusing Redishred of breach of contract, breach of good faith, fraudulent misrepresentation and violations of various state laws. There are currently 17 Proshred offices in the United States. Crozier says Redishred has done nothing wrong. “We are disappointed that three franchises have elected to take their operational issues to the courts, despite Redishred’s attempts to work with them to improve their individual businesses. The Proshred System has continued to have strong system sales growth over the last few years and despite a weakened US economy the system has posted three consecutive quarters of record system sales… The franchisees that have made these claims have benefited from Proshred’s brand and ongoing use of Proshred’s operating and marketing systems… as a result this group of franchisees has seen sales growth in the first quarter of 2010 that is consistent with the entire system.”

Read more articles and short news online ... Visit our website at www.sssnews.com.

10 Security Shredding & Storage News. July / August 2010

By Jim Booth, PRISM International

O

n July 14, a new proposed rule was issued by Health and Human Services Office of Civil Rights. This rule is primarily responsible for modifying the Privacy Rule, Security Rule and Enforcement Rule so that they conform to the HITECH Act. PRISM staff conducted a preliminary review of the rule and flagged the following areas that could impact commercial information management business if the rule becomes final, as proposed: •  The Business Associate definition has been broadened to include, among other things, “administrative” functions and also a “person who offers a personal health record to one or more individuals on behalf of a covered entity”. •  Responsibilities of subcontractors to Business Associates are modified throughout the rule to duplicate the responsibilities of the Business Associate. In other words if a Business Associate employs a subcontractor to carry out the work, a shredding contractor for example, the responsibilities of that shredding contractor are essentially the same as those of the Business Associate. •  The Secretary of HHS is given wide latitude in determining the severity of penalties and civil monetary fines based on mitigating factors •  Established positive defenses for non-compliance at various time periods during implementation of the various HIPAA rules (before February 18, 2009; between February 18 2009 and February 18, 2011; and after February 18 2011). •  Modifies administrative and physical safeguards in the security rule •  Modifies the conditions that must be included in Business Associate Agreements and requires agreements for subcontractors •  Establishes transition provisions and deadlines with some flexibilities to make modifications to existing agreements. Please note that this is not a comprehensive list of changes proposed in the rule. Based on discussions between PRISM International and Health and Human Services, all PRISM International members in the United States (and as many non-members in the United States as we can contact) will be asked to comment on this rule. We have developed a resource page to assist members in commenting. In the course of commenting on the rule, we would ask members and non-members who comment on the rule to stress two important points: •  Covered Entities have been using changes in HIPAA rules as an excuse to shift indemnification from themselves to Business Associates. There is no law or rule that requires this. HHS should issue guidance that addresses and clarifies this point in the Final Rule or by other printed means. •  If some information management companies provide minimum services to Covered Entities that do not require them to “use” or “disclose” PHI, they should not be treated any differently than a common carrier such as FedEx or UPS, who are not considered Business Associates. HHS should modify the Business Associate definition or guidance and comments to verify this interpretation. PRISM International is in communication with the Small Business Administration Office of Advocacy, which may be able to assist PRISM International members and the industry with this issue insofar as it impacts small business issues. The SBA Office of Advocacy recommends individually written letters that provide specific details on how HIPAA and HITECH create a hardship for small business. PRISM International has provided a pre-addressed template on our resources page. The letter contains a checklist of items to include or address when writing the letter. Non-members of PRISM International are welcome to make use of these resources and to contact me, jim@prismintl.org, if they need assistance in commenting on the rule. Access the PRISM International resource page at this link: http://www. prismintl.org/2010-hipaa-campaign-key-points.


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Streamlined Solution: Cresswood Introduces the New HF-CS Destroyer Shredder

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ptimizing efficiency drives innovation in secure destruction technology. In response to customer demand, Cresswood Shredding Machinery, Cortland, IL is launching a new and streamlined version of their established lowRPM, single-shaft HF (hopper feed) Destroyer Shredders. The HF-CS Destroyer features a smaller, more compact footprint to accommodate space constraints within plant-based shredding facilities. In addition, the HF-CS model packs processing versatility for a range of managed materials into a cost-conscious and efficient machine design. For more information, contact Cresswood Shredding Machinery at 800-962-7302, or visit our Website at www.cresswood.com.

All Source Security Container USA Introduces New ‘Glider’ Shredding Cart Accessory

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ll Source Security Container USA has launched their newest product: the ‘All Source Glider’. This new cart accessory makes shredding operations easier and faster by acting as an extra set of wheels with brakes that are easy to attach on the front of the shredding cart to be maneuvered with ease when full. The new ‘All Source Glider’ helps operators collect more in less time. The accessory attaches/detaches in seconds to any standard North American style cart. Once attached carts can be easily maneuver eliminating the need to tilt or push a full shredding cart. This also provides the operator the option to easily steer two full shredding carts at once and get in/out of locations in a hurry. For more information contact All Source Security Container USA at 866-526-4579 or visit www.allsourcemfg.com.

New Degausser from Security Engineered Machinery Erases Hard Drives

Wildeck Introduces New Laddergard™ Safety Swing Gates to Guard Hazardous Openings

powerful new electromagneticpulse degausser from Security Engineered Machinery permanently erases data from computer hard drives, data tapes, and other magnetic media. The model EMP001 is easily operated on a tabletop. Hard drives or other magnetic media (up to 1” x 4” x 6”) are inserted in a slot in the top of the compact (28” x 10” x 19.5”) unit, the start button is pushed, and the fully degaussed items are ejected at the bottom of the chamber approximately 60 seconds later. Power requirements are 8 amps at 120 volts or 4 amps at 240 volts.

ildeck, Inc. recently introduced two Laddergard™ Safety Swing Gates that protect personnel at potentially dangerous openings, including: loading dock ladders; mezzanine or work platform ladders; rooftop access ladders; maintenance access ladders; stairway openings; equipment and machinery platform ladders and stairs; and other applications. Wildeck’s Laddergard™ safety swing gates are self-closing and meet OSHA 1910.23 safety requirements. They are constructed of strong structural steel that withstands daily use and abuse. All mounting hardware is included and gates are easily installed to existing pipe rails up to 2 inches in diameter.

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For more information, contact James T. Norris, Vice President, Norris & Company, 437 Turnpike St., Canton, MA 02021, Tel: 781-821-8300, Fax: 781-821-8301, E-mail: jim@norrisco.com, www.semshred.com.

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For more information on the new Laddergard™ Safety Swing Gates and the complete line of Wildeck products and services, visit www.wildeck.com or e-mail info@wildeck.com.

Security Shredding & Storage News. July / August 2010 13


In the News Shotgun Capital Advisors Releases 2010 Document Destruction Industry Survey Results

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he U.S. document destruction industry continues to enjoy strong growth and performance metrics despite challenging economic conditions, according to the annual industry report released by Shotgun Capital Advisors, LLC. “2009 tested the recession resiliency of the document destruction industry, with volatile recycled paper prices early in the year concealing the growth rate of many industry participants” said Jim McGuire, President of Shotgun Capital Advisors. “A number of respondents to our survey reported double-digit or better 2009 revenue growth, an outstanding accomplishment given the economic environment.” The report examines industry trends and provides specific metrics on sales, margin, volumes, fleet size, customer retention, and employee data. Added to this year’s report is an analysis of the impact of 2009 paper price volatility on participant shredding operations. The report is available on the Shotgun Capital Advisors website at www. shotguncapital.com.

800,000 Hospital Records Exposed to Identity Theft

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call today 888-440-7170 www.weimaamerica.com info@weimaamerica.com

fficials with Massachusetts’ South Shore Hospital say their sorry that back-up computer files containing 14 years’ worth of medical records were lost by the data management company hired to shred them, reports bostonherald.com. The files, which cover the period between January 1996 and January 2010, contained the sensitive personal and financial data of more than

Info Request #131

800,000 people. Rob Cheyne, an information security expert with the Boston-based Safelight Security, says the number of people exposed to identity theft by the incident is staggering. The records included such protected information as names, addresses, dates of birth, Social Security and driver’s license numbers. Hospital officials say some credit card and bank account information may also have been on the files in an outdated format. To date there is no evidence that the information included in the files has been used maliciously. According to an independent information security consulting firm, it would require specialized software, hardware and technical skill to access the files. South Shore Hospital has not released the name of the data destruction firm responsible for losing the files. The files were sent off for destruction in February. By June, the hospital had not yet received the certificate of destruction promised by the company. It was learned later that only a portion of the files had been destroyed. South Shore launched its own investigation and contacted the Massachusetts Attorney General’s Office and several state and federal agencies. South Shore plans to notify all of the people affected by the incident.

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14 Security Shredding & Storage News. July / August 2010

CWRE10 SecShrd 4.875 x 7.5.indd 1

7/26/2010 1:41:55 PM

he Albuquerque, New Mexico-based company TMM Business Record Storage sustained approximately $10 million in damages recently in a warehouse fire, reports fireengineering.com. Hundreds of medical records were consumed in the blaze, which started in the HVAC unit at a neighboring building. More than 75 fire officials, including members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, were needed to put out the flames over the course of several days. Clouds of smoke emanating from the inferno could be seen for miles. Officials worked with the owner of TMM to try to recover medical records that did not burn.


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Security Shredding & Storage News  

Jul/Aug 2010 Issue