Industry News

Sen. Gordon Smith (R-Oregon) has led a bipartisan coalition of Senate Commerce Committee leaders to introduce comprehensive legislation that protects consumers from identity theft.

Senate Bill 1408 sets national standards for notifying consumers of data breaches, requires businesses to improve their safeguards for sensitive consumer information, gives consumers the right to freeze their credit reports to thwart identity theft and limits the solicitation of Social Security numbers.

Smith’s bill is co-sponsored by Commerce Committee Chairman Ted Stevens (R-Alaska), Co-Chairman Daniel Inouye (D-Hawaii), Sen. Bill Nelson (D-Florida), Sen. John McCain (R-Arizona), and Sen. Mark Pryor (D-Arkansas). The Commerce Committee has primary jurisdiction over the Federal Trade Commission, which enforces identity theft and fraud laws.

"The Internet and new business technologies have added a lot to daily life, but they’ve also made us more vulnerable," Smith says. "We need this bill because having the world at your fingertips shouldn’t get you into a financial world of hurt."

The bill addresses recent personal data breaches and provides tools for consumers to protect themselves from identity theft.

The proposed bill would affect entities that collect sensitive personal information, including Social Security numbers, financial account information, driver’s license information and other information that the Federal Trade Commission determines can be used for identity theft. The bill would also cover any third party that purchases or otherwise acquires this information. Businesses, schools and other organizations that hold sensitive personal information will be required to secure it with physical and technological safeguards that will be specified by the Federal Trade Commission.

Under the proposed bill, consumers must be notified if any sensitive personal identification is lost or otherwise breached and there is a reasonable risk that the information could be used for identity theft.

The information holder also must report data breaches affecting more than 1,000 individuals to the Federal Trade Commission or the holder’s primary regulator. Those failing to notify may be fined up to $11 million.

The bill would also allow consumers to voluntarily "freeze" their credit reports, preventing unauthorized access to them. Consumers would then be able to lift the freeze to apply for new credit.

A program for recycling non-winning instant lottery tickets is paying off big for Westboro, Mass.-based recycler E.L. Harvey & Sons and the Massachusetts State Lottery.

"Instant Re-Play," the lottery’s anti-litter program that rewards individuals who collect and recycle non-winning instant or scratch tickets, has yielded more than 50 tons of tickets.

The recovered tickets are shredded and mixed with other grades of fiber and shipped to a tissue products mill where they are converted into paper goods, such as tissue, toilet paper and napkins, according to Ellen Harvey, executive vice president.

"The number of tickets we’ve collected has grown each time we’ve organized a collection, and we expect it to continue growing as word continues to spread," she says.

As an incentive to reduce litter in the state and increase recycling, for every 25 instant lottery tickets turned in for recycling, a person receives one new ticket for free.

An Earth Day collection on the Esplanade in Boston yielded eight tons of instant tickets in just five hours, while a June 28 collection at lottery headquarters in Braintree, Mass., resulted in the collection of 16 tons in five hours, according to a release from E.L. Harvey & Sons. A collection event July 25-27 at the Barnstable Fair brought in an estimated 20 tons of tickets, Harvey says.

"This is a win/win situation," says Harvey. "Litter is being removed from the environment. [The tickets] are being recycled. This is a great process and a great project."

IDENTITY THEFT RESOURCE CENTER ANNOUNCES TWO NEW PROGRAMS

The Identity Theft Resource Center (ITRC) is making available two programs to assist companies in responding to and preparing for security breaches.

ITRC has developed a consulting program that will work with companies and their legal representatives to make sure that all affected individuals receive pertinent information and are reassured that the company is actively working to rectify the situation.

In 2003, ITRC first introduced its new corporate information-handling program that helps businesses to see their companies "through the eyes of an identity thief." This self-assessment program’s goal is to give executives and senior staff the tools they need to do a thorough analysis of the company and still allow businesses the privacy to be honest and open about possible weak areas without the concern of public exposure.

The program comes with a workbook that leads the assessment team through a step-by-step procedure.

More information about these programs or the Identity Theft Resource Center is available by contacting Linda Foley at (858) 693-7935.

SECURE ECO SHRED OFFERS FRANCHISE OPPORTUNITIES

Secure Eco Shred, a document destruction company based in Farmington, Mich., is offering franchise opportunities.

Steve Kalapos

"The demand for secure document destruction is so great that we are expanding to offer territories to franchise operators," Steve Kalapos, president of Secure Eco Shred, says. "Our goal is to open three more offices by the end of the year."

Kalapos adds, "Secure Eco Shred sits on the board of the National Association for Information Destruction and we have been instrumental in promoting the passage of laws such as the Fair and Accurate Credit Transaction Act (FACTA). We will continue to promote and encourage the highest standards of ethics for the information destruction industry."

According to Kalapos, Secure Eco Shred is projecting $3.2 million in revenue in 2005. "We are excited about being in the position to open offices across the country and expecting to open 75 new locations over the next four years," he says.

The company currently has offices in Detroit and Grand Rapids, Mich.; Brookfield, Conn., and Chicago.

Additional information on franchise opportunities is available from Gina at info@secureecoshred.com.

INTECHRA ATTRACTS FUNDS TO FUEL NATIONAL EXPANSION STRATEGY

Intechra Holding Corp., parent of wholly owned subsidiary Intechra LLC, a recycler and remarketer of computers and other information technology assets, has received $4 million in equity funding that will be used to support the company’s national expansion and acquisition strategy.

Chrysalis Ventures, a source of equity capital for growth companies in the Southeast and Midwest, led the financing of the $4 million Series B preferred equity investment.

Co-investors in the financing include existing investors Votum Capital LLC and Clayton Associates.

Founded in 1987 as Resource Concepts Inc., Intechra, which is based in Carrollton, Texas, provides IT asset disposition services, including investment recovery, data destruction and recycling with liability protection.

The company refurbishes and remarkets IT equipment using multiple domestic and international distribution channels, including its Outlet Computer retail store (www.outletcomputer.com), broker and dealer channels.

"We are pleased to partner with Chrysalis Ventures, Clayton Associates and Votum Capital LLC for this important round of growth financing," Chip Slack, Intechra Holding Corp. chairman and CEO, says.

"In addition to capital, these groups bring valuable strategic insight as Intechra seeks to be the dominant player in this market. This round of funding allows us to continue to grow organically while exploring potential acquisition targets,"adds Slack.

"Intechra serves a market that is large and growing, yet highly fragmented," says David A. Jones, Jr., chairman and managing director of Chrysalis Ventures. "With its proven service offering and experienced management team, we believe it is well-positioned to become a leader in this important, emerging industry. We have been working closely with the company for over a year, monitoring their progress as they evaluated their capital needs and look forward to working together."