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Life Lock Employee Benefit Presentation
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4. Identity Theft Today According to FTC’s Consumer Fraud and Identity Theft Complaint Data CY2007 Highest number of ID Thefts with 43,892 Rank #1 in ID Theft Highest growth of ID Theft complaints with 33% Y/Y 22% 2.4% 55% 14% 5%
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9. The Lifelock Service TOTAL SERVICE GUARANTEE Regardless of the type of identity theft that our members experience, we cover it. Minimize risk of new account fraud Fraud Alerts Reduce the risk of identity theft through stolen mail Junk Mail/Pre Approved offering reduction Identify fraudulent and criminal sale of personal information eRecon TM Reduce the risk of Identity Theft through the method of change-of-address TrueAddress TM Identity Theft protection for children; the most vulnerable age group for identity theft Child Protection With LifeLock available 24 hours a day 7 seven days a week Remediation
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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
13. Consumer Choices Today LifeLock’s services focus on proactively preventing identity theft and aggressively resolving and incidents that do occur.
14. Consumer Choices Today / C C Fraud alerts set $1M total service guarantee Removal from junk mail lists Removal from preapproved credit card offers Request free annual credit reports WalletLock TM TrueAddress TM eRecon TM Credit monitoring Before Theft During Theft After Theft = Competition C = LifeLock
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17. LifeLock Brand Awareness LifeLock maintains the lead in terms of total awareness (43% unaided + aided) – across a variety of institutions. Based on the August 2008 survey conducted by MRSI.
27. Who is Affected According to Javelin Identity Fraud Survey Report CY2007
28. Methods of Identity Theft According to Javelin Identity Fraud Survey Report CY2007
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33. Consumer Choices Today / C C Fraud alerts set $1M total service guarantee Removal from junk mail lists Removal from preapproved credit card offers Request free annual credit reports WalletLock TM TrueAddress TM eRecon TM Credit monitoring Before Theft During Theft After Theft = Competition C = LifeLock
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35. Summary Resolution Process LifeLock Confidential 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
36. Summary Resolution Process LifeLock Confidential Product Feature Resolution Steps Average Resolution Time Notification WalletLock™ 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
37. Fraud Resolution Process Fraudster attempts to open a new line of credit In 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 Member discovers fraud and contacts LifeLock; 24 x 7 x 365 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 Issuer Fraudster LifeLock may escalate Remediation / ID Restoration issues to 3 rd party Third Party calls member to begin remediate / restore processes Initiate Limited Power of Attorney if needed Resolved LifeLock Confidential LifeLock email $1M Service Guarantee
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39. 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 3 rd 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 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 $1M Service Guarantee email