© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 2
Identity Theft Today
The LifeLock Service
LifeLock’s Employee Benefit
Agenda
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 3
• Identity theft affects a significant portion of the population and will continue to rise
• The FTC and Javelin estimate over 9.9 M ID Theft victims in the US in 2008, up 21% from 2007
• There were 446 data breaches affecting 127M personal data records in 2007, with the period Jan-June 2008 jumping 69%
• Identity Theft affected 4.3% of the US Population in 2008
Identity Theft Today
According to Javelin Identity Fraud Survey Report and FTC’s Consumer Fraud Report CY2008
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 4
Identity Theft Today
According to FTC’s Consumer Fraud and Identity Theft Complaint Data CY2007
55% 14% 5%
Highest number of ID Thefts with
43,892
Rank #1 inID Theft
Highest growth of ID Theft
complaints with 33% Y/Y
22% 2.4%
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 5
How Information Was Misused
• Credit Card Fraud
20%• New Accounts• Existing Account
• Phone or Utilities
13%• Telephone• Wireless• Utilities
• Employment Related
15%
• Bank Fraud
11%• Electronic Fun Transfer• Existing Accounts
• Loan Fraud
4%• Business/Personal/Student• Auto Loan• Real Estate Loan
• Government Documents/Benefits
15%• Fraudulent Tax Return• Gov. Benefits Applied• Driver’s License Issued
• Other Identity Theft
24%• Uncertain• Evading the Law• Medical• Internet/Email• Apartment/House Rental• Insurance• Property Rental Fraud• Securities/Other Investments• Child Support• Bankruptcy• Magazines
• Attempted Identity Theft
6%
According to FTC’s Consumer Fraud and Identity Theft Complaint Data CY2008
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 6
SSN is not an effective source of identification• Easy to falsify, counterfeit or create a ‘synthetic’ identity
• No standardized effective manner to associate SSN to a specific person
• Personal data is already out and available to the public
ID Theft is a low risk/high reward crime• Lucrative
• Little retribution/enforcement/penalties
• Anonymity
Many victimized by those closest – family, co-workers, caregivers and community members
Roots of the Identity Theft Problem
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 7
The fraud amount per victim equaled $4,849 in 2008
Identity theft cost consumers and businesses a total of $48B in 2008
The average Identity Theft lifecycle lasted between 72 to 218 days of fraud or misuse an overall increase of 21%
Victims spent on average 175-300 hours to restore stolen identities
How Victims Were Impacted
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 8
How to Protect Yourself AgainstIdentity Theft
Prevention: Limit your points of vulnerability• Annual credit report
• New accounts
• Change of address
• Online buying and trading of identities
• Stolen mail
• Stolen wallets
Detection• Alerts
• Credit reports
Resolution
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 9
The Lifelock Service
Minimize risk of new account fraudFraud Alerts
Reduce the risk of identity theft through stolen mailJunk Mail/Pre Approved offering reduction
Identify fraudulent and criminal sale of personal informationeReconTM
Reduce the risk of Identity Theft through the method of change-of-addressTrueAddressTM
Identity Theft protection for children; the most vulnerable age group for identity theftChild Protection
With LifeLock available 24 hours a day 7 seven days a weekRemediation
TOTAL SERVICE GUARANTEE Regardless of the type of identity theft that our members experience, we cover it.
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 10
The Lifelock StoryLifeLock incorporated in April 2005 and had just over 2500 members year end 2005
After a nationally televised interview in February 2006, Todd Davis shared his social security number for the first time on the air
LifeLock quickly grew from 4,000 subscribers to over 1M in May 2008
With the LifeLock Service, Todd had over 400 attempts of identity theft and only 1 incident of identity theft for an amount of $500 and the occurrence was quickly resolved by the LifeLock remediation team
To date, of LifeLock’s 1.2M subscribers, only 105 had their identities stolen, and LifeLock was quick to respond to the problem, making them some of our biggest supporters
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 11
Explosive Growth and Market Potential
(a) As of 8/31/2008
Immediate primary market opportunity: “33+M subscribers of credit monitoring, with over 35% of them very unlikely to renew”
– Javelin Strategy & Research
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 12
LifeLock Subscriber Benefits
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 13
Consumer Choices TodayLifeLock’s services focus on proactively preventing identity theft and aggressively resolving and incidents that do occur.
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 14
Consumer Choices Today
Fraud alerts set
$1M total service guarantee
Removal from junk mail lists
Removal from preapproved credit card offers
Request free annual credit reports
WalletLockTM
TrueAddressTM
eReconTM
Credit monitoring
Before Theft During Theft After Theft
/ C
C
= CompetitionC= LifeLock
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 15
LifeLock Security
ISO/IEC 27001 certified for data and operational security• Highest industry standard to secure and protect personal information
PCI Level 1 compliant• Highest level of compliance in credit card protection
Physical security• Biometric security access• Surveillance 24 hours a day
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 16
LifeLock National Branding
Over 92% of household impressions
Over 2,068 national radio spots year to date not including $41,989 spent in local radio spots
Over 500 interviews year to date
Over 9,400 nationally aired commercials year to date
Over 6B impressions and 6M clicks through online advertising
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 17
LifeLock Brand AwarenessLifeLock maintains the lead in terms of total awareness (43% unaided + aided)
– across a variety of institutions.
Base: Total
Identity Theft Protection Specialists LifeLock Identity Guard Identity Theft Shield TrustedID Identity Truth Debix Banks Bank Of America Citibank Chase/JPMorgan Chase Wachovia Wells Fargo Insurance Companies Allstate
2211
%
24221413
105324932
(2062)
524314
Base: Total
Insurance Companies (cont.) State Farm Credit Bureaus Equifax FreeCreditReport.com Experian TransUnion Credit Card Companies American Express Capital One Chase Citi Discover
2626242220
2211
(2062)%
48
4635323226
Based on the August 2008 survey conducted by MRSI.
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 18
LifeLock Celebrity Apprentice
Two teams of celebrities will be charged with designing a package and promotional display for the launch of the new LifeLock Gold
The program averaged over 9 million viewers in the most recent season and closely matches the LifeLock customer profile
The program has an extremely successful track record of driving web, sampling and store traffic
• Tide To Go – 500,000 web visitors, 300,000 sample requests in one day
• Vanilla Mint Crest – 4.7 million web hits, 40,000 samples requested
The program will integrate an offer for a free 30 day trial of LifeLock through an in-store promotion at Target
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 19
Retail Merchandising
LifeLock Identity Theft Protection Starter Kit
• $9.99 retail• Launches October 2008 chain-
wide in 1,100 Office Depot stores• Initial launch 20,000 units• Office Depot- in-store on power-
wing grid endcap• 350 secondary free-standing
displays• Office Depot feature Oct-Dec
2008- “purchase LL ID theft protection starter kit, enroll and receive a $10 Office Depotgift card”
Identity Theft Prevention Kit for Dummies
• LifeLock trial offer: 2,400 stores with
• 180,000 units on endcap in Nov 2008
LifeLock Retail ONE-YEAR Membership Kit
• $99 retail- launches chain-wide at Best Buy
• 920 BB stores• Initial launch 12,000 units• Best Buy feature in circular
ad, possible front page 10/27• Endcap in November, possible
circular ad placement again in December
• Bundled offer in Feb-April targeting tax products
• Tear-pad offer, Reward Zone, BestBuy.com, Geek Squad co-marketing plans in Q1 2009
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 20
Continuous ProtectionLifeLock Product Vision
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 21
LifeLock as an Employee Benefit
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 22
Employee Benefit Options
Employee paid• Group discount available
• Direct home billing via credit or debit card
• Payroll deduction available for groups larger than X
• 24x7x365 call center
• Signup online at www.lifelock.com or via 1-800 LifeLock
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 23
Employee Benefit Options
Company paid• Volume incentive pricing based on group size
• Employer pays for all employees (population pricing)
• Employer pays on a per subscriber basis
• 24x7x365 call center
• Signup online at www.lifelock.com or via 1-800 LifeLock
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 24
Employee Benefit Support
Support from start to finish• Employee benefit brochures
• Employee benefit launch kits
• Employee benefit emails and collateral
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 25
To Add Lifelock As An Employee Benefit To Your Company
Contact:Cheryl Miller888-629-2410
www.thefinanciallink.ws
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 26
Thank you!
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 27
Who is Affected
According to Javelin Identity Fraud Survey Report CY2007
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 28
Methods of Identity Theft
According to Javelin Identity Fraud Survey Report CY2007
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 29
Identity Theft
At age 18, Candace order her first credit report, after a professor in her business class told the students it was a good idea. When she received it, a family member had opened over 5 credit cards in her name, cell phone and more. To this day, she has had trouble cleaning up her credit.
Identity Theft Victim; Candace Kapela, Tucson AZ
Jennifer had just moved into her new apartment and called her utilities company to get signed up. They informed her that her account was already active. She came to find that the Identity Thieve had been using her Social Security Number since 2006
Identity Theft Victim, Jennifer Mooney, Mechanicsville, VIA
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 30
eReconTM
A service added to LifeLock’s Identity Protection in April 2008
Identifies fraudulent and criminal sales of:• Social security numbers• Bank accounts• Credit accounts• Drivers license registration• Medical ID’s
Monitors over 10,000 websites, bulletin boards and chat rooms used by criminals to sell and trade identities
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 31
TrueAddressTM
The change of address method of identity theft continues to be the preferred method of identity thieves, occurring 3 times as much as change of phone number or obtaining counterfeit cards
A service added to LifeLock in April 2008, LifeLock’s TrueAddress minimizes risk of becoming a victim of mail fraud by alerting members if any new address information is associated with their name
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 32
WalletLockTM
Lost or stolen wallets attribute to 33% of Identity Theft
With LifeLock’s WalletLock if a customers wallet is stolen or misplaced• LifeLock will make all phone calls to creditors, financial institutions and other
document-issuing companies
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 33
Consumer Choices Today
Fraud alerts set
$1M total service guarantee
Removal from junk mail lists
Removal from preapproved credit card offers
Request free annual credit reports
WalletLockTM
TrueAddressTM
eReconTM
Credit monitoring
Before Theft During Theft After Theft
/ C
C
= CompetitionC= LifeLock
© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 34
Voice of the ConsumerIn February 2008, LifeLock lead a “Defeat Identity Theft” tour to urge Congress to focus on helping
consumers fight identity Theft
LifeLock toured 15 cities in 12 days, from Miami to Washington DC
LifeLock’s petition received over 20,000 signatures
The petition was delivered to congress urging them to:• Provide stronger penalties against both identity thieves and third
party agencies
• Enact laws to prevent agencies from selling personal information
• Assign more funding to law enforcement to fight this crime
Summary Resolution Process
Product Feature
Member Resolution Tasks
Average Resolution Time Notification
Fraud Alert Mail/fax proof of current address and identity
Approximately 2-3 days to process documents; Approximately 2-4 weeks for bureaus to receive and process alert
Phone, mail and/or email; Credit Bureaus mail confirmation
eRecon™ Respond to resolution team’s emails/calls to confirm information, communicate suspected problems, complete limited power of attorney
Members are contacted within 24 hours of the alert being received; resolution approximately 1 hour after member is contacted
Phone and/or email
TrueAddress™
Respond to resolution team’s emails/calls to confirm information, communicate suspected problems, complete limited power of attorney
Members are contacted within 24 hours of the alert being received; resolution approximately 1 hour after member is contacted
Phone and/or email
35
LifeLock Confidential
Summary Resolution Process
Product Feature Resolution Steps Average Resolution Time NotificationWalletLock™ Contact LifeLock within 30
days of lost/stolen wallet incident; file police report and fraud affidavits; limited power of attorney; may need to participate in conference calls with document issuers
Requests to replace all lost documents are usually completed in approximately 1 hour after member is contacted. Actual document replacement time will vary by state and issuing institution
N/A – member initiated
Private & Public Database(Court Records, Address History, Names and Aliases, Payday Loans, Sex Offender)
Review alerts for accuracy, communicate suspected problems, limited power of attorney
New Service - Historical data not yet available
Personal Breach Detection
Review educational material and FAQs regarding P2P software Safe Practices, uninstall P2P software,
New Service - Historical data not yet available
Phone and/or email
36LifeLock Confidential
Fraudster attempts toopen a new line of creditIn LifeLock member’s
name
Creditor sees Fraud Alert and calls member at phone # listed to authenticate
identity
Member is alerted and able
to terminate credit
application
Creditor does not act on Fraud Alert and opens line of credit
LifeLock
emailMember discovers fraud and contacts
LifeLock; 24 x 7 x 365
$1M Service Guarantee
Member is covered by LifeLock’s $1M Total Service Guarantee. LifeLock may
retain attorneys, third-party recovery firm and reimburse expenses as needed to
restore ID
Credit IssuerFraudster
LifeLock may escalate Remediation / ID
Restoration issues to 3rd party
Third Party calls member to begin
remediate / restore processes
Initiate Limited Power of Attorney if
needed
Resolved
Fraud Resolution Process
LifeLock Confidential
RESOLUTION PROCESS
eRecon™/TrueAddress™ RESOLUTION PROCESS
Member views Alert details in portal or calls LifeLock for
assistance
$1M Service Guarantee
LifeLock
Third Party Scans daily for member data
across online chat rooms, IRCs, BBS, Public and Private
Databases
If data is found contact member by email
(phone for members without email)
Online Alert details provides “next step” instructions
No member response is received (response and participation is required to continue
case resolution)
LifeLock Resolution Team Triages Issue
If member requires further resolution,
contacts LifeLock 24 x 7 x 365
LifeLock may escalate Remediation / ID
Restoration issues to 3rd party
Initiate Limited Power of Attorney
if needed
Member is covered by LifeLock’s $1M Total Service Guarantee. LifeLock may retain attorneys, third-party
recovery firm and reimburse expenses as needed to
restore ID
Third Party calls member to begin
remediate / restore processes
Member validates Alert details
Phone Resolution
LifeLock Confidential
RESOLUTION PROCESS
$1M Service Guarantee
LifeLock
Third Party Scans daily for member data
across online chat rooms, IRCs, BBS, Public and Private
Databases
Online Alert details provides “next step” instructions
LifeLock Resolution Team Triages Issue
Member reviews Alert and determines ID has
been compromised; contacts LifeLock 24 x 7
x 365
LifeLock may escalate Remediation / ID
Restoration issues to 3rd party
Initiate Limited Power of Attorney if
needed
Member is covered by LifeLock’s $1M Total Service Guarantee. LifeLock may retain attorneys, third-party
recovery firm and reimburse expenses as needed to
restore ID
PRIVATE & PUBLIC DATABASE RESOLUTION PROCESS
If data is found, attempt to contact member by
Email contact directs member to the LifeLock portal to view Alert
details
Third Party calls member to begin
remediate / restore processes
No member response is received
(response and participation is
required to continue case resolution)
Phone Resolution
LifeLock Confidential
RESOLUTION PROCESS
WalletLock™ RESOLUTION PROCESS
Report Theft/Loss24 x 7 x 365
Identify Missing Items
Initiate the fraud affidavit
and police reports if the
wallet was stolen
$1M Service Guarantee
LifeLock
Conference call with member and contact each document issuing entity to cancel/void
documents
Local LawEnforcement
Agencies
Fill out the paperwork and
request new replacements
Document Issuing Company
Replacement Items sent directly toLifeLock Member; Member is covered by LifeLock’s $1M Total Service Guarantee. LifeLock may retain attorneys,
third-party recovery firm and reimburse expenses as needed to restore ID
LifeLock may escalate Remediation / ID
Restoration issues to 3rd party
Third Party calls member to begin
remediate / restore processes
LifeLock Confidential
PERSONAL BREACH RESOLUTION PROCESSRESOLUTION EFFORTS
Determines Sourceof Data Found (member-
disclosed vs. external source
Self-Disclosed: Member is sent Alert email
directing them to the LifeLock portal
to view alert details
Third Party Scans daily for member data across files found on
P2P Networks
If data is found externally Third Party begins
resolution
Present member with Recommendations; education; FAQs;
Uninstall P2P Software; Safe
Practices
Third Party assesses potential
fraud exists, escalates to the
Resolution Team to begin proactive
remediation
Member reviews information and has additional
questions / concerns and contacts LifeLock 24 x 7 x
364
LifeLock Resolution
Team works to resolve
issue
LifeLock
External Entity
$1M Service Guarantee*
Third Party works to stop propagation of data with
appropriate external entity
LifeLock may escalate to Third Party for further
investigation
* Member is covered by LifeLock’s $1M Total Service Guarantee. LifeLock may retain attorneys, third-party
recovery firm and reimburse expenses as needed to
restore ID
Phone Resolution
LifeLock Confidential