Identity Theft Protection

A Consumer and Benefit Plan Priority

May, 2011

Identity Theft is Everywhere

• Credit /debit cards, mail, and medical records are just a few areas where personal identifiable information (PII) is exposed and can fall into the wrong hands.

– Phishing (electronic deception of users by cyber criminals), Peer-to-Peer (P2P) file sharing, online shopping, ATM/handheld skimmers, and mail theft are just a few of the tools used by identity thieves.

• Consider these facts:

– An identity stolen every 4 seconds.

– 3.5% of U.S. adults fell victim to identity theft in 2010. (3.5% x 10 yrs = 35%)

– 77,000,000 SONY identities stolen in April, 2011

– The number of identity fraud victims increased 37% in the past two years.

– One in every four American adults reported being notified by a business or other institution that their information had been compromised in a data breach.

– 10 percent of all victims spent at least 55 hours resolving their problems. The top 5 percent of victims spent at least 130 hours

– Average fraud amount (2010) was $4,607.

Our mission is to protect for a LifeLock member all things personal: good name, credit, financial assets, and family.

-1-

Why Offer LifeLock?

• Opportunity

– Identity theft is one of the fastest growing crimes in America; and employers are looking for other non-traditional voluntary benefits to enrich their benefit plans and “offset” increasing employee contributions to group health care plans

– LifeLock Identity Theft Protection is a new benefit category that completes an employee’s need for financial security and protection

• Staying power

– With an 85% retention rate, LifeLock members value their protection

• Ease of administration

– Simple electronic eligibility formats. We take care of everything post-sale with comprehensive fulfillment support.

-2-

Why Offer LifeLock?

-3-

America’s premier personal identity theft protection company – the leader in proactive identity theft protection!

Fast Facts

• Founded in April 2005

• Approximately 450 employees

• Located in Tempe, AZ

• Privately held by Bessemer Venture Partners, Kleiner Perkins Caufield and Byers, Goldman Sachs

• Market share: 1,800,000 members as of 12/2010

• LifeLock was one of the first companies in the US to achieve compliance and certification under the ISO 27001 standard for information security management systems

Recognition

• 2009 Service Elite Award, CRM Magazine 2009

• 25 Most Admired CEOs, Phoenix Business Journal 2009

• AO Global 250, AlwaysOn 2009

• People’s Choice Best New Service – True Address, American Business Awards 2009

• Best Company of the Year, under 2500 employees, American Business Awards 2009

• Best Campaign, Voices TV Commercial Campaign, Audio Visual Awards (AVA Awards) 2009

Who Are We?

-4-

Media Exposure

-5-

The LifeLock Difference

• LifeLock Proactively Protects Your Employees

– LifeLock® utilizes proprietary monitoring and scanning technologies to detect fraud as early as possible to help prevent identity theft before it happens

• LifeLock is Secure

– LifeLock® takes significant measures to ensure that all sensitive member data is secured, including ISO 27001 certification and the highest level of PCI compliance

• LifeLock is the Brand to Trust

– Through a strong national advertising campaign that is backed by our comprehensive Service Guarantee, LifeLock has built one of the most recognizable and trusted brands in the marketplace

• 24/7/365 Member Service

– LifeLock is always here to help our members and we provide a strong remediation system which helps alleviate stress if your employee becomes a victim of identity theft

• Innovation

– LifeLock is an industry leader that is constantly working on developing next generation identity theft products

-6-

LifeLock’s Proactive Solution

ROACTIVE SOLUTION

Stop identity theft at

the source.

Alerting and informing

of fraudulent activity

after it has occurred.

Full-service restoration

of accounts, credit and

your good name.

-7-

Consortium

• First national, cross-industry compilation of identity information

• 700 billion aggregated data elements

• 1.1 billion unique identity elements

• Average daily flow = 45 million

• 2.6 million reported frauds

• 1.4 billion consumer transactions

• Contains information about:

Credit applications

Card transactions

Payments

Changes of address

Demographics

DATA IS NEVER SOLD OR DISTRIBUTED

ID Network

Source: Internal LifeLock member data

-8-

LifeLock Identity Alert Delivery Timing ALERT™

DELIVERY TIMING

• Applications obtained by consortium

• Real time processing • Batch processing – every 24 hours

Alerts sent to LifeLock

members in real time

Consortium Data

Data feed to

LifeLock refreshes

every 15 minutes

Wireless

Application

Payday loan

Application

Utility

Application

Check

Re-order

Credit Card

Application

Consumer

Credit

Application

-9-

• Credit Reports

Free Credit Reports annually from all three national credit agencies

• Reduced Pre-Approved Credit Card Offers

Reduces the risk of identity theft through stolen mail beginning 48 hours after enrollment

• LifeLock Identity Alert™ System

Proactive method for validation of no fraudulent activity within credit and service providers within our extensive network

• eReconTM Service

Searches known criminal websites daily for the illegal selling or trading of your personal information and monitors your Social Security numbers, email addresses, telephone numbers, and credit cards

• TrueAddressTM Service

Reduces the risk of identity theft through the method of change-of-address; weekly data base search

• WalletLockTM Service

Helps replace contents of a lost or stolen wallet**

• LifeLock for Minors

Identity theft protection for children; one of the most vulnerable age groups for identity theft

• $1 Million Total Service Guarantee*

With LifeLock available 24 hours a day seven days a week, if you become a victim of identity theft while a member of LifeLock because of a failure in our service, we will help you fix it, up to $1 Million.

LifeLock Basic Service

$1 Million Total

Service Guarantee

Reduced Pre

Approved Credit Card

Offers

LifeLock Identity Alert™ System

eReconTM

TrueAddressTM

WalletLockTM

Child Protection

* $1 Million Total Service Guarantee - If you become a victim of identity theft because of a failure in our service, we'll help fix it, up to $1,000,000. (Restrictions apply. See lifelock.com for details. Due to New York State law restrictions, the LifeLock Service Guarantee cannot be offered to the residents of New York.) ** Excludes monies and photos

-10-

Cost is $8.50 per single employee

per month

LifeLock Command Center (Enhanced Protection for

Non-Credit Threats)

• LifeLock extends its industry-leading protection to consumers to help protect against a variety of non-credit threats that cannot be detected using credit monitoring services. Non-credit threats involve instances where fraudsters use elements of a victim’s identity without their knowledge to:

• Provide the victim’s name/ information as an alias when arrested • Obtain a payday loan (paycheck cash advance) under the victim’s name/

information

• Gain employment using the victim’s name/ information • Register the victim’s name/ address on a Sex Offender Registry • Establish new utility accounts (phone, electric, and cable) in the victim’s name

-11-

LifeLock Command Center™ (Enhanced Protection)

LifeLock Personal Breach Detection™ Service Actively monitors unregulated file-sharing global networks for a member’s identity information. If a member is found to potentially be at risk, LifeLock alerts them by email and helps protect them from accidental personal information disclosures. This service doesn’t just help protect the data on the MEMBER’S computer, but all other computers that may store their personal information and inadvertently disclose it. User downloads of music, software, and documents increase member exposure to a breach.

LifeLock Identity SDS™ • Payday Loan Reports and Alerts

Notifies member of any payday loan activity associated with their Social Security number – these loans (100,000,000 annually) can be obtained from a lender without a credit inquiry being conducted and therefore are not consistently detected with traditional credit alerts

• Sex Offender Registry Reports and Alerts

Lists registered sex offenders in records in a member’s zip code. LifeLock weekly updates will also alert the member if a sex offender is fraudulently using their address.

• Public Records Reports and Alerts

Lists postal addresses associated with a member’s identity found in public records

• Alias Records and Alerts

Lists alternate names and addresses associated with a member’s identity (Social Security number)

• Court Records Reports and Alerts

Lists court records weekly that match member’s name and date of birth from county courts, Departments of Corrections, and other legal agencies to help verify that criminals are not using a member’s name to commit crimes

LifeLock Standard

Personal Breach

Detection™

Payday Loan Alerts

Sex Offender

Alerts

Public Records

Alerts

Alias Alerts

Court Records

Alerts

-12-

Cost is $12.75 per single employee per month

LifeLock Identity SDS [SEARCH.DETECT.SECURE])

((Member Profile)

-13-

Employee Benefit Pricing

LifeLock Family of Products

Four-Tier Basic Command

Center

Basic + Credit

Suite

Command

Center +

Credit Suite

Employee $8.50 $12.75 $21.21 $25.46

Employee +

Spouse $17.00 $25.50 $42.42 $50.92

Employee

+Child(ren) $14.88 $20.19 $30.76 $36.07

Employee +

Family $23.38 $32.94 $51.97 $61.53

-14-

Member Notification/Resolution Process

Enterprises Member Consortium Data

Consortium investigates. If there

is potential fraud, they notify the

Enterprise Lender.

6 LifeLock sends Alert

to member with details regarding

the transaction. 3

Enterprise sends request 1 4 Member responds if they did not

initiate the transaction.

7 Enterprise provides consortium

with findings/outcome via email

9 LifeLock contacts member for

follow up remediation or

reassures member the event has

been resolved.

LifeLock opens a case with the

consortium group via email. 5 8 Consortium notifies LifeLock that

the case has been resolved via

email.

If event matches enrolled

consumer, generate alert to

LifeLock.

2

1 3

9

6

2

5 4

8 7

Financial

Institutions,

Telecomm,

Retailers,

Etc.

LifeLock

-15-

Health Plan/LifeLock Operations Flow

Group Payroll Deduction/Online

Enrollment

Azeros Sends Eligibility to

LifeLock Partner

LifeLock Partner Sends Eligibility to

LifeLock

LifeLock Activates Members

LifeLock Collects Missing

Information

Member

Enrollment

LL

Outbound

Call to

Member

LL Email

to Member

Through

LL Portal

Through LL

Member

Services

Member Completes

Additional Family

Enrollment

LL Reminds

Member to Add

Missing Info

or

Ongoing LL Fulfillment

Post Enrollment Member Interaction

-16-

Initial Employee Enrollment Starts with your Benefits Portal

-17-

Member Communications – Welcome Kit

-18-

Post Enrollment Member Communication

-19-

LifeLock® Credit Score Manager™

LifeLock® Credit Score Manager™ will provide consumers with

simple, convenient, straightforward, easy-to-understand options that meet the needs of existing members and attract new members who would not typically become LifeLock identity theft protection customers.

• Daily Tri-Bureau Credit Monitoring

• LifeLock members with Credit Score Manager will receive e-mail alerts anytime there is a change to any of their credit bureau reports from Experian, Equifax and TransUnion

• Credit Score Tracker • LifeLock members with Credit Score Manager will be able to

view their TransUnion credit score every month

• Annual Tri-Bureau Credit Reports with Credit Scores

• LifeLock members with Credit Score Manager will not only receive their free credit reports, LifeLock will also now get their scores from all three major bureaus, Experian, Equifax, and TransUnion, once per year. No more hassle of having to get your reports and pay an additional fee for the scores

-20-

Credit Alert E-Mails

-21-

Remediation Process

* If you become a victim of identity theft because of a failure in our service, we'll help fix it, up to $1,000,000. (Restrictions apply. See lifelock.com for details. Due to New York State law restrictions, the LifeLock Service Guarantee cannot be offered to the residents of New York.)

*

-22-

LifeLock Services

Fraud Alerts 04/2005

WalletLock Service

12/2007

TrueAddress: 04/2008

myLifeLock Portal:

05/2008

LifeLock Identity Alerts:

09/2009

Personal Breach

Detection - 12/2009

Payday Loan

Alerts/Reports –

12/2009

2005 2006 2007 2008 2009 2010

eRecon 04/2008

Sex Offender Alerts -

12/2009

Public Records

Reports/Alerts - 12/2009

Alias Records

Reports/Alerts - 12/2009

Court Records

Reports/Alerts - 12/2009

$1MM

TSG*/Remediation

24/7 Customer Service

- 04/2005

Mortgage Alerts - 2010

Conclusion: LifeLock offers FAR more than what consumers can do themselves

Reduced Junk

Mail04/2005

Credit Reports 04/2005

Child Protection 4/2005

Credit Card Offer Opt

Out 4/2005

$1MM

TSG/Remediation

Fraud Alerts 04/2005

Reduced Junk

Mail04/2005

Credit Reports 04/2005

Child Protection 4/2005

Credit Card Offer Opt

Out 4/2005

Fraud Alerts 04/2005

24/7 Customer Service

- 04/2005

$1MM

TSG/Remediation

Reduced Junk

Mail04/2005

Credit Reports 04/2005

Child Protection 4/2005

Credit Card Offer Opt

Out 4/2005

Fraud Alerts 04/2005

WalletLock Service

12/2007

24/7 Customer Service

- 04/2005

$1MM

TSG/Remediation

Reduced Junk

Mail04/2005

Credit Reports 04/2005

Child Protection 4/2005

Credit Card Offer Opt

Out 4/2005

Fraud Alerts 04/2005

WalletLock Service

12/2007

eRecon 04/2008

TrueAddress: 04/2008

myLifeLock Portal:

05/2008

24/7 Customer Service

- 04/2005

$1MM

TSG/Remediation

Reduced Junk

Mail04/2005

Credit Reports 04/2005

Child Protection 4/2005

Credit Card Offer Opt

Out 4/2005

Sex Offender Alerts -

12/2009

Public Records

Reports/Alerts - 12/2009

Alias Records

Reports/Alerts - 12/2009

Court Records

Reports/Alerts - 12/2009

Personal Breach

Detection - 12/2009

Payday Loan

Alerts/Reports –

12/2009

Fraud alerts 04/2005

WalletLock Service

12/2007

eRecon 04/2008

TrueAddress: 04/2008

myLifeLock Portal:

05/2008

LifeLock Identity Alerts:

09/2009

24/7 Customer Service

- 04/2005

$1MM

TSG/Remediation

Reduced Junk

Mail04/2005

Credit Reports 04/2005

Child Protection 4/2005

Credit Card Offer Opt

Out 4/2005

Outstanding retention rate with an open cancellation policy

100% customer satisfaction rating with member services from Javelin Strategy & Research

* $1 Million Total Service Guarantee - If you become a victim of

identity theft because of a failure in our service, we'll help fix it, up

to $1,000,000. (Restrictions apply. See lifelock.com for details.

Due to New York State law restrictions, the LifeLock Service

Guarantee cannot be offered to the residents of New York.) -23-