Compliance Coach Identifies 23 New Identity Theft Red Flags Based on Recent Cases...

Compliance Coach Identifies 23 New Identity Theft Red Flags Based on Recent Cases and Schemes that Millions of Companies Need to Review Prior to Compliance Deadline

Compliance Coach's new CompliancePal software already contains
government published 26 identity theft red flags. The 23 red flags
added to the software are industry's first set of new red flags.
SAN DIEGO--(Business Wire)--
Compliance Coach Inc., a provider of automated regulatory
compliance solutions to the financial services industry, today
announced that it has identified 23 new identity theft red flags and
has updated its software, CompliancePal
(http://www.compliancepal.com). CompliancePal is the industry's first
software solution to enable compliance with the FACT Act Identity
Theft Red Flags Rule.

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 November 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.

"CompliancePal enables a financial institution or creditor to
quickly and easily get into and stay in compliance," said Sai Huda,
chairman and CEO, Compliance Coach. "Under the rule, companies must
monitor for new identity theft risks and update their program for new
red flags," continued Huda.

CompliancePal already contains the previously government published
26 identity theft red flags. The 23 new red flags identified by
Compliance Coach and added to CompliancePal are the industry's first
set of new red flags. The red flags are based on recent identity theft
cases and schemes affecting financial institutions, creditors and
consumers.

For example, the following are three new red flags identified by
Compliance Coach and added to CompliancePal that are based on the
United States v. Caldwell identity theft case involving the "name
change" scheme. Caldwell used this scheme to defraud more than 50
banks and retail stores and created thousands of dollars in losses:

-0-
*T
-- Red Flag # 1: Government issued identification bears an issue date
and expiration date that are unusually close together. For
example, a driver's license or passport bears an issue date and an
expiration date that correspond to a time frame that is less than
the usual time frame for validity.
-- Red Flag # 2: Inconsistency between name and SSN when compared to a
third party database.
-- Red Flag # 3: Existing or known customer frequently changes his or
her name. For example:
-- Changing order of last name (e.g., Jones-Smith to Smith-Jones)
-- Adding or changing last name
-- Changing first name
-- Changing entire name (e.g., first, middle, and last name
changes)
*T

"Compliance Coach's team of legal and compliance experts monitor
and analyze daily identity theft cases, schemes and trends 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 at http://www.compliancepal.com.

About Compliance Coach Inc.

Compliance Coach is a leading provider of automated regulatory
compliance solutions to the financial services industry. Five of the
top 10 banks and hundreds of financial institutions throughout the
U.S. rely on Compliance Coach's solutions and services to mitigate
compliance risk.

Compliance Coach provides risk assessment software, e-learning and
other tools to enable compliance with applicable laws and regulations.
Its products and services are supported by an in-house team of
nationally recognized legal, compliance and technology experts.
CompliancePal is the company's latest revolutionary web-based software
that uses a unique five step system to enable compliance with the new
FACT Act Identity Theft Red Flags Rule, quicker and easier.

The company is privately held and venture capital backed by four
of the top 10 banks: Wells Fargo, Bank of America, Citigroup and
Washington Mutual are the company's primary investors. It is based in
San Diego, California and has a regulatory relations office in
Washington, D.C. For further information, visit
http://www.compliancecoach.com.

Compliance Coach(R) is a registered trademark and
CompliancePal(TM) is a trademark of Compliance Coach, Inc. Patents
pending. Copyright (C) 2008 Compliance Coach, Inc. All rights
reserved.

TAGS: compliance, identity theft, data security, consumer privacy

RMS Public Relations
Jason Kirshner / Shana Starr
949-579-9569 x 801/802
Jason-PR@RMS-Biz.com / Shana-PR@RMS-Biz.com

Copyright Business Wire 2008