Life Lock Employee Benefit Presentation

© 2009 www.lifelock.com 800 LIFELOCK (543.3562) **Confidential** 2

Identity Theft Today

The LifeLock Service

LifeLock’s Employee Benefit

Agenda


• 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


According to Javelin Identity Fraud Survey Report and FTC’s Consumer Fraud Report CY2008



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%


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


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


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


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


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.


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


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


LifeLock Subscriber Benefits


Consumer Choices TodayLifeLock’s services focus on proactively preventing identity theft and aggressively resolving and incidents that do occur.


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


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


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


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.


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

http://www.tide.com/en_US/tidetogo/index.jsp


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


Continuous ProtectionLifeLock Product Vision


LifeLock as an Employee Benefit


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


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


Employee Benefit Support

Support from start to finish• Employee benefit brochures

• Employee benefit launch kits

• Employee benefit emails and collateral


To Add Lifelock As An Employee Benefit To Your Company

Contact:Cheryl Miller888-629-2410

www.thefinanciallink.ws


Thank you!


Who is Affected

According to Javelin Identity Fraud Survey Report CY2007


Methods of Identity Theft

According to Javelin Identity Fraud Survey Report CY2007


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


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


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


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


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


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

Email

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


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RESOLUTION PROCESS

eRecon™/TrueAddress™ RESOLUTION PROCESS

Member views Alert details in portal or calls LifeLock for

assistance


LifeLock

email

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



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



Member validates Alert details

Phone Resolution


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RESOLUTION PROCESS


LifeLock

email

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



Initiate Limited Power of Attorney if

needed

Member is covered by LifeLock’s $1M Total Service Guarantee. LifeLock may retain attorneys, third-party


restore ID

PRIVATE & PUBLIC DATABASE RESOLUTION PROCESS

If data is found, attempt to contact member by

email

Email contact directs member to the LifeLock portal to view Alert

details



No member response is received

(response and participation is

required to continue case resolution)

Phone Resolution


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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


LifeLock

email

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






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

email

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


restore ID

Phone Resolution


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