BDProtect Inc CONFIDENTIAL ISACA Birmingham Michael Kiefer General Manager

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Agenda: ■ Who owns listening/auditing the Internet? ■ How does the Internet Ecosystem effect on an organization? ■ Who owns brand, revenue or reputation risk? ■ Departmental risk opportunities ■ Is the Internet is a Board issue, not a departmental issue?

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Quote of the Day: There are known known's. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know we don't know. --Donald Rumsfeld--

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL The basic message is simple: “Cyberspace is its own medium with its own rules. Cyberattacks, for instance, are enabled not through the generation of force but by the exploitation of the enemy’s vulnerabilities. Permanent effects are hard to produce. The medium is fraught with ambiguities about who attacked and why, about what they achieved and whether they can do so again. Something that works today may not work tomorrow (indeed, precisely because it did work today). Thus, deterrence and warfighting tenets established in other media do not necessarily translate reliably into cyberspace. Such tenets must be rethought. This monograph is an attempt to start this rethinking.” Rand Report to USAF, 2009

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL A Growing Threat By the end of 2010, criminals will routinely use the Internet to extort funds from organizations, threatening to damage their corporate reputation by ensuring that routine online search requests will return negative or even libelous results…… "If your business depends on a positive Internet reputation, then you have little choice than to explicitly manage that reputation online. The Internet is like a bad-news Petri dish; negative information multiplies and spreads with frightening speed and becomes virtually impossible to erase.“ 5

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Protect against intellectual property and ownership dilution Rights Protect SEO, online traffic and channel effectiveness. Stop gray/ counterfeit sales Revenue Erosion due to impact of customer experience beyond corporate website Reputation

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Inside the Firewall…$billions & audit

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Outside the Firewall…$50M & no audit

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL 2009 Internet World by SECOND.. Outside the Firewall 7 PCs Sold 2 Million s Sent 7 People Logon For the First Time 11,000 Songs Shared 1,157 Videos Viewed on YouTube 2 New Blogs Created

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL The Anatomy of Internet based Fraud Company CommunityCustomer

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Internet Ecosystem Websites Images DomainsSub DomainsLinksAuctionsDiscussionSocial MediaTrade Marks 11 Registrars Service Providers Legal CounselAgencies International Law Enforcement Web Hosting

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL $1B losses Stella seeks support to shed ‘wife beater’ image I've recommended Dell computers for many years. But my confidence in them was shaken when I got a new laptop in Fall 2004, and I ended up in "Dell Hell" 12 Who here is next?

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Audit? Why? ■ Complainant alleges that it owns federal common law trademark rights in the term xxxxx based on use in commerce in the United States and consumer recognition of the mark. ■ Complainant alleges that the disputed domain names and are identical or confusingly similar to its trademark. ■ Complainant contends that Respondent lacks rights or legitimate interests in the disputed domain names. Complainant indicates that Respondent has not been authorized to use its trademark in the disputed domain names, and that Respondent has not made any bona fide offer of goods or services under the trademark. ■ Complainant alleges that Respondent registered and has used the disputed domain names in bad faith. Complainant argues that Respondent has attempted to disrupt Complainant’s business by preventing Complainant from using the disputed domain names, and by directing providing “dead links” to Internet users that may falsely create the impression that Complainant is no longer sponsoring events. Complainant further argues that Respondent acted in bad faith because he transferred the disputed domain names from Complainant without its knowledge or consent, and at least initially hid his identity behind a privacy shield. 13

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Enterprise Internet Governance

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL $10M annual loss each, who owns? ■ Definable ROI: ■ Counterfeit product marketing and sales – product – coupons – manuals ■ Channel/Antitrust ? – MAP – Gray Market ■ Unauthorized agents posing as authorized ■ Traffic diversion schemes & SEO ■ Document “leakage”  Soft ROI:  Identity theft via brands  offers  job boards  contests  False endorsement claims  Corporate reputation attacks  “Pump & Dump”  Real or impersonator employee commentary  10% customer dissatisfaction  Customers die

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Counterfeiting ■ A trillion dollar / year market or 10% of GGDP ■ Counterfeit activities are usually not audited or monetized! –If $1 million was missing from inventory or cash, an investigation would be launched, the law would get involved, the board would be notified. –The Internet is the communication and monetization vehicle of the perps. –$100M/year or more eBay alone in manuals* *mk estimate 2009 consumer products only

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Online Traffic Diversion ■ Business to Consumer example of Online Diversion cost –Average monthly online visitors to your site 30,000 –Average monthly visitors diverted 10%, 3000 –Conversion rate to offending sites 1.5% –Average monthly customers lost (2) * (3) = 45 –Annual loss of 540 customers (45*12 months) –Value/Customer $300 –Total cost of online diversion to competition $162K If $162,000 in cash was missing, would you investigate?

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Reputational Loss ■ Disney, September 28 th, 2009 market cap of $51+B at $28.+/share ■ Disney Online, 163M videos viewed/Google, August 2009* ■ and by the way… ■ * as reported by comScore, Inc. September 28 th,

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Market Cap Loss ■ Teck Cominco, February 10 th, 2009 market cap of $16B at $27+/share ■ (Diversified resource company committed to responsible mining and mineral development with major business units focused on copper, metallurgical coal, zinc, gold and energy) ■ Pump/Dump scam linking to Yahoo! Finance ■ Falsified financials found on Yahoo Finance 19

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Revenue Loss

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Stella Loss ■ Estimated $400 million in annual lost revenue ■ Overall damage to brand estimated at $1 billion ■ Blog/Discussion Storm went undetected for six months ■ No controls or processes in place to monitor domains and sub-domains, spam, Internet chatter, brand logos, names, links, etc. ■ Restart UK –New Agency –New Executive team –New Brand diligence

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Counterfeit Revenue Loss & Risk ■ US Health Science Summit Nov 2008 –$3.3 Trillion WW spend –10% of all global prescriptions counterfeit ■ Internet “Threat Assessment” Result: –$20B+ Pharma –$800M product –22,000+ infraction websites* –Cost to company estimated at $80M Net Sales 70%+ margin –Action: Nothing - $4M to fix not in budget, channel issue and making number

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Reputational Loss Reputation Damage: The website m/2007/01/merrill_lynch_s uper_model_sex.php is discussing a sex scandal that took place between a Merrill Lynch executive and a super model m/2007/01/merrill_lynch_s uper_model_sex.php

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Steps to Internet Listening 24 SEARCH Detection Monitoring UNDERSTAND Analysis Reporting ACT Mitigation Response

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Act: Mitigation Strategies Effective Action Plans are a combination of subject matter expertise with online intelligence. What to do? How to Act? SUBJECT MATTER EXPERTISE What's going on? Where to go? Measure Effectiveness ONLINE INTELLIGENCE

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL Listening tools work in three steps

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL in Closing 27

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL What if? ■ we added 5% in top line revenue? ■ we moved the meter on customer satisfaction, would that make a difference and lower our call center costs? ■ our channels were clean and trusted, what would the ROI be? ■ an antitrust case was logged and how would it effect us? ■ we lost our reputation? (60% of market cap) ■ experienced a 10% market cap loss, what would we pay for that insurance? ■ Bottom Line: CEO’s and Boards are now INVOLVED, as MARKET VALUES are affected…NO ONE OWNS it! 28

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL ■ Listen to the Internet continuously in host languages ■ Internet Data Mining capability ■ Understand & Embrace Social Media ■ Track Internet Linkages & Associations ■ 24x7 Internet Incident Response ■ Relationships with the 4,000+ Global Internet Service Providers & Certs ■ Monitoring of your marks and messaging (IP and Images) ■ Global Enterprise visibility & workflow Vendor Requirements 29

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL 30 Appendix Thank You and Questions?

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL “As blogs, message boards and social network sites continue to dominate the Internet culture, brand-monitoring services and security vendors must extend their technologies and services to cover these areas. Only Brandimensions and Cyveillance offer such services.” Gartner, Notes on Brand Monitoring firms 31 UNIQUE Capabilities

The leader in internet reputation management TM BDProtect Inc CONFIDENTIAL SecurityLegalMarketingWebmasterPR/IRHR Identity Theft Phishing, Pharming, Vishing, Smishing√ √ Malware√ √ Brand Abuse Basic Internet Monitoring√ √ √ Domain/Sub Domain Monitoring√ √ √ √ √ Image Tracking (Optional Watermarking) √ √ √ √ Auction Monitoring √ √ √ Channel Compliance √ √ √ √ Web Page Content, DNS and IP Validation √ √ Inbound, Outbound and Internal Link Checking √ √ Domain Management (Registrations,Renewals,Transfers)√ √ √ √ Defamatory Discussion Machine validated√ √ √ √ √ √ Human validated√ √ √ √ √ √ Special Offerings YouTube Monitoring √ √ √ 724Protect - Internet Reputation Management Program √ √