The Consequence of Improper Data Destruction

Nowadays, we hear about data breaches in the news frequently. We all know the incidents are happening because of poor security and improper destruction of data. Most data destruction companies try to maintain the security of the data from leaking while they destruct them. 

Here, we have discussed the consequence of improper data destruction. 

Regulatory Fines and Settlements

If the incident of data breach happens, then it is likely that data destruction company has violated few regulatory requirements of statutes such as FACTA, HIPAA and Sarbanes-Oxley. You should know that the company is legally responsible for storing and destroying data according to the regulations.

Keep in mind that if the data is destroyed improperly, then the company may have to pay a substantial fine. In a few cases, fees are small but the maximum fee for HIPAA is approx. $1.5 million. Apart from this, they may have to deal with a civil lawsuit from the affected clients. 

The data destruction company may lose the trust and reputation forever!

The data destruction company may have the ability to cover the costs associated with fines and lawsuits. But can they risk the long-term financial benefits due to improper data destruction? One of the most problematic things is that no other clients can trust them after this. In this industry, the people whom they work with, trust the company with their sensitive information. The information including:

  • Personal medical information
  • Financial information like credit card numbers and social security.
  • Personal details like address and name.

If the data destruction company fails to perform duties in a proper way, then no clients can trust them about their information. If the company really works hard to gain their trust again, it is nearly impossible to do. Keep in mind that one single breach can ruin the reputation of all previous hard work. Therefore, the company should be very careful to destroy their client’s data in a proper way. Otherwise, the company may not get the chance again! 

The Company May Lose the Business

The most serious and dangerous consequence a data destruction company may get is that it may lose the business!  According to research, more than 60% of small companies who are responsible for a data breach, close within six months. 



Consult with Us

If you want to destroy your sensitive data securely, then you should contact the specialists of Innovative IT Solutions. They can destroy the data strategically and in a proper way. Apart from that, they provide services such as recycling, data destruction and asset recovery. To avoid every risk, visit us in OKC. 


Location: Oklahoma City, OK, USA

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