The
Laws
Various privacy laws have been enacted to ensure the confidentiality
of client's information. There have been severe penalties for failing to comply with these laws.
HIPAA (Health Insurance Portability and Accountability Act): A United States Federal
law requiring health care organizations to maintain safeguards to prevent patient records from becoming part of the public
domain.
GLB (Gramm Leach Bliley): The Financial modernization
act passed in 1999 protects the privacy of consumer information held by financial institutions and requires companies that
collect financial information to give consumers privacy notices that explain the institutions information sharing practices.
FACTA (Fair and Accurate Credit Transaction Act): Enacted
in December 2003 and more rules added in June 2005, the act contains a number of rules designed to combat fraud, identity
theft, and similar crimes. To minimize the risk of identity theft and consumer fraud, the Disposal Rule states that any person
who maintains or otherwises possesses consumer or employee information for a business purpose is required to properly dispose
of the information. This includes information used or expected to be used to establish eligibility for credit, insurance,
or employment. In addition, all information contained in or derived from consumer reports and records must be properly disposed
of to protect against unauthorized access to or use of the information.
