Compliance Coach identifies the red flags of fraud with new CompliancePal software MortgagePress.comCompliance Coach, CompliancePal, mortgage fraud, red flags, regulatory compliance solutions
Compliance Coach Inc., a provider of automated regulatory
compliance solutions to the financial services industry, has
announced that it has identified 11 new identity theft red flags
and has updated its software, CompliancePal.
The Federal regulation imposes new responsibilities on
businesses to prevent consumer identity theft. The impact is broad
and the rule affects every single bank, credit union, mortgage
lender, auto dealer, credit card lender, payday lender, landlord,
utility company, phone company, and any consumer or small business
lender in the country.
The compliance deadline is Nov. 1, 2008. Failure to comply can
lead to civil money penalty for each violation, regulatory
enforcement action, private plaintiff lawsuits, negative publicity
and loss of business.
"The Rule applies not only to a consumer purpose account but
also any other account with a reasonably foreseeable risk of
identity theft. So a business account may also be susceptible to
identity theft," said Sai Huda, chairman and CEO, Compliance Coach.
"CompliancePal is updated regularly for new red flags so affected
companies can perform a detailed risk assessment to include
consumer as well as business accounts and all relevant red flags to
ensure full compliance."
CompliancePal enables a financial institution or creditor to
quickly and easily get into and stay in compliance. Under the rule,
companies must monitor for new identity theft risks and update
their program for new red flags. CompliancePal already contains the
26 identity theft red flags previously published by the government,
as well as 23 new red flags identified by Compliance Coach. The red
flags are based on recent identity theft cases and schemes
affecting financial institutions, creditors and consumers.
These 11 new red flags identified by Compliance Coach and added
to CompliancePal create a total of 60 red flags that affected
companies must consider and indicate business accounts are equally
at risk. For example, in both United States v. Perry and United
States v. Williams cases, fraudsters used business accounts to
commit identity theft that resulted in losses to businesses and
financial institutions exceeding $500,000 and $400,000
respectively. In both cases, there were several red flags of
identity theft that financial institutions failed to detect and
take timely action.
"Compliance Coach's team of legal and compliance experts monitor
and analyze identity theft cases, schemes and trends daily to
identify new red flags. CompliancePal is the only solution for
millions of companies to easily stay on top of new red flags," said
Huda. CompliancePal is a Web-based software that walks the user
through a series of questions and produces: The required risk
assessment, the mapping of red flags to appropriate detection and
response procedures, the written program, the training materials
and the compliance status report, everything necessary to pass an
audit.
The software is updated regularly for new identity theft schemes
and red flags so a company can easily update its identity theft
program and maintain compliance. To use the solution, companies
simply sign-up online and access the software via the Internet. A
demo can be viewed online at at www.compliancepal.com.
For more information, visit www.compliancecoach.com.
