1. NFSSC 2012 Annual Conference Do You Have Identity Theft On Your Menu? Walt Augustinowicz walt@idstronghold.com 800.610.2770 x 110

2. Outline What is Electronic Pickpocketing? What is NFC (Near Field Communications)? How will the combination of the two effect your operations?

3. Electronic Pickpocketing What is Electronic Pickpocketing?

4. Electronic Pickpocketing Electronic Pickpocketing = When un- authorized persons use the RFID capability of your cards to steal information from those cards or clone them remotely. Very difficult to detect or solve crime. Already a crime in some states such as California to skim data wirelessly without permission. Nevada Attorney General issued an Electronic Pickpocketing Consumer Alert in 2011. Better Business Bureau now recommending shielding and Identity Stronghold products.

5. Credit/Debit cards Building Access cards Mandated by HSPD-12 for all US Federal Employee ID cards National ID cards Healthcare ID cards Passports Transit cards Drivers’ Licenses Hotel key cards Trade Show ID cards Ski lift passes What kind of cards contain RFID chips? Which cards?

6. An interface built into many new smart phones that mimics RFID credit cards but can be used for any kind of data transfer to another NFC device. Designed so a consumer can make a credit or debit card payment using their own cell phone by waving it over your contactless payment card reader. Google Wallet and ISIS are some of the biggest projects involving NFC and payments. NFC = Near Field Communications What is NFC?

7. RFID = Radio Frequency Identification Device Frequency = 13.56Mhz Protocol = ISO 14443 Billions of cards issued No Off switch Endless personal data from credit card numbers and photos to fingerprints and iris scans. Two Technologies = One Big Problem Contactless Cards (RFID)NFC Smart Phones NFC = Near Field Communications Frequency = 13.56Mhz Protocol = ISO 14443 Millions sold Technology designed to emulate contactless cards Can EASILY be reversed to read contactless cards The Problem

8. Nashville News Story

9. Which phones have NFC capabilities? Which smartphones? Galaxy Nexus Verizon Nexus S Sprint T-Mobile Android HTC One X HTC One XL Nexus S Google Nexus S 4G Samsung Galaxy S II and III(not all versions) Samsung Galaxy Note (not all versions) Galaxy Nexus HTC Amaze 4G Huawei Sonic T20 Huawei Sonic (U8650NFC-1) Sony Xperia S Sony Xperia P Sony Xperia SOLA Turkcell T20 Turkcell T11 BlackBerry Blackberry Bold 9790 (Codename Bellagio) BlackBerry Bold 9900/9930 (Codename Dakota/Montana) BlackBerry Torch 9810/9860 Blackberry Curve 9350/9360/9370 And many more (from Wikipedia) Rumor is the next version of the iPhone will feature NFC

10. Electronic Pickpocketing via Trojan Application Smart Phone Applications can easily be written with hidden Trojan functionalities. Once an app or game containing a Trojan electronic pickpocketing function is downloaded your phone is always listening for nearby RFID cards. A smartphone left near a card has lots of time and processing power to attack even encrypted cards. Lots of code already published on the web for well known attacks on cards such as Mifare Classic and DESFire. Credit cards and debit cards are easy targets as there is no encryption that we have seen. Data can be delivered conveniently to attacker anywhere in the world via email.

11. The Effect on YOU With new NFC capabilities, will you have to collect employee phones at the door? Should customer credit cards be shielded while passing through the restaurant? What about employees with building access cards?

12. Prevention Techniques Read the security warnings when downloading apps. If the app says it uses NFC and you can’t think of a good reason it should, DON’T install! Keep your cards in shielded sleeves, shielded wallets, or shielded badge holders.

13. What can restaurants do to help prevent this? Restaurants have contact with millions of people daily and make a great distribution point for protected Secure Sleeves®. Secure Sleeves can be customized with your brand. Your company provides a valuable service to the community by protecting them from payment fraud and in return you get a promotional mention every time the consumer opens their wallet.

14. Consumer Knowledge Millions of consumers already know about Secure Sleeves through media appearances by Identity Stronghold on 4 continents including over 60 local markets in the United States. Once they find out your restaurant is giving them out for free with each visit they will come back for more and tell their friends. Seen On: *All logos copyright their respective owners.

15. Free Samples! Come by Identity Stronghold booth 104 today and pickup FREE SAMPLES. Don’t forget to enter the raffle. You could win one of our shielded Italian leather wallets. Watch WKYC TV Cleveland tonight after the Olympics. The Investigator Tom Meyer will be demonstrating how we used a skimmed card to make a purchase from one of the worlds largest online retailers. http://www.wkyc.com look under News then “The Investigator” http://www.wkyc.com

16. Contact Info and additional information Walt Augustinowicz – Founder/CEO Identity Stronghold 565 Paul Morris Drive Englewood, FL 34223 800-610-2770 walt@idstronghold.com Website http://www.idstronghold.comhttp://www.idstronghold.com YouTube Video Demonstrations and News Stories http://www.youtube.com/waltaugust