Harland Financial Solutions has partnered with regulatory compliance software firm Compliance Coach to market a so-called “Red Flags” compliance tool for meeting regulators demands that companies do more to prevent identity theft and account fraud.

Harland will market CompliancePal, a Web-based service that guides creditors through risk assessments, red-flag mapping, staff training, and reporting. The service will be regularly updated with new risk assessments as new ID theft schemes come to light, according to a release.

The Red Flags rules, which are part of new ID theft prevention guidelines put in place for banks and other creditors by the Federal Trade Commission, require the adoption of programs to monitoring various “red flags” that may indicate fraud. Those flags may be as few as the 26 spelled out by the FTC, or the 60 that Compliance Coach has piled up in its tutorial package. The programs have to be in place by Nov. 1 – hence some of the controversy around these new rules, since they allowed for little capital budget preparation.

Compliance Coach is among a coterie of vendors who, much like online security providers reacting to 2005 FFIEC multi-factor authentication guidelines, developed their wares almost overnight to cash in when a compulsory regulatory opportunity came knocking. Zoot Enterprises, Conextrix, The 41st Parameter, AdmitOne Security and Experian are taking up the Red Flags cause. Compliance Coach comes armed with VC funding from Wells Fargo, Bank of America, Citigroup and Washington Mutual.

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