Eye on the Market

Electricity in the Air

Adding electronics information destruction to document shredding services can be a winning formula, according to panelists at a session of the National Association for Information Destruction (NAID) Annual Conference, held in April in San Antonio.

Several panelists noted that confidential shredding firms have much to consider if they are going to handle electronics destruction on their own, but they can almost certainly benefit from forming an alliance with an existing electronics recycling company.

Shredding computers down to their constituent resources (metals and plastics) can require a significant capital investment, ongoing operating costs, environmental compliance considerations and attention to additional commodities markets.

Angie Keating of Reclamere, Tyrone, Pa., urged that hard drive erasure and re-selling, as well as the harvesting of resalable components, should continue as a profitable and environmentally sound practice. Data cannot be recovered from properly wiped hard drives, she stated.

Dan Bayha of Back Thru the Future Computer Recycling, Ogdensburg, N.J., noted that full-scale electronics shredding systems have purchase prices, maintenance costs and operating (energy) costs that can make them "prohibitive," but his company has responded to customer demand by providing simple but effective hard drive destruction.

Charles Smith III of South Carolina-based eDR Solutions noted that with some 150 million obsolete hard drives in storage, that market could be a considerable one. He added, though, that, "When a hard drive comes out of the machine, there’s a risk" in terms of stored information being accessed.

The panelists seemed to agree that document destruction companies would be wise to at least strike up alliances, as customers are increasingly concerned about information protection when their computers become obsolete. As Keating noted, companies are wising up that they cannot spend million on firewalls to protect information, but then sell their old hard drives on e-Bay.

NO PHISHING

America Online has announced a new initiative to combat "phishing," the practice of using fraudulent e-mail and fake Web sites to solicit sensitive personal information from users.

America Online has partnered with Cyota Inc., an anti-fraud and online security provider for financial institutions, to help identify and block access to suspected phishing sites through an around-the-clock monitoring process. AOL says it is also working internally and with other partners to identify and block phishing sites.

This effort supplements other steps AOL says it has taken to help protect its members against phishing, including spam blocking, cooperation with law enforcement, member education and tools like AOL Money Alerts, AOL Passcode and AOL Official Mail.

"Phishing and identity theft are the fastest-growing security threats online, and we will work around the clock to protect our members with the tools we have available," says Tatiana Platt, AOL senior vice president and chief trust officer. "By limiting our members’ access to suspected phishing sites, we’re trying to cut the lines before a phisher can reel them in and steal sensitive financial and personal information. And we’re just getting started. Over coming months, we’ll continue to roll out new and stronger technological and legal defenses against phishers, scammers and identity thieves."

America Online is working with Cyota to evaluate potential phishing sites based on member feedback through its "Report Spam" button and through other sources. When a possible phishing site is identified, AOL limits access to the site through the AOL client and informs any member who attempts to visit it that it is suspected of being a dangerous site.

AOL and Cyota are also working to evaluate and deploy other joint technologies.NAID BROCHURE

ON THE MARK

The National Association for Information Destruction Inc. (NAID) Public Relations Committee knew it had to act quickly to fulfill its commitment to put a FACTA (Fair and Accurate Credit Transactions Act) marketing tool into members’ hands. What it didn’t know was how well the information would be received.

With the ink barely dry on the first batch of "FACTA Disposal Rule" brochures, NAID reports that orders have already topped 58,000 pieces, making it the best initial order for a single marketing piece in the organization’s history.

If brochure orders continue at this pace, NAID warns that there may be a slight delay in fulfilling future orders until stocks are replenished.

The "FACTA Disposal Rule" brochure can be ordered from NAID’s Web site at www.naidonline.org/forms.html.

June 2005
Explore the June 2005 Issue

Check out more from this issue and find your next story to read.