Veri-Site Overview and Use Cases Prepared for: CWAG

1. Veri-Site Overview and Use Cases Prepared for: CWAG

2. Rise of “Rogue” Websites Increasingly, criminal enterprises – via “rogue” websites – are manipulating unwitting businesses in order to drive ill-gotten financial gain. Criminal Proceeds • Ad Revenue • Payment for goods and services • Malware, cybercrime

3. Rise of “Rogue” Websites • How are US citizens negatively impacted? • Shoppers don’t get what they ordered: • Amazon shoppers 2012 – 7% counterfeit goods per International Chamber of Commerce • Fake pharmaceuticals and consumer health risk • Malware and Cybercrime: • Pirate sites 2010 – 12% distributing malware per Symantec • Jobs • Intellectual Property Theft regarded as a strategic risk (US White House) • NPD reports that only 37 % of music acquired by U.S. consumers in 2009 was paid for • Exposure to Pornography including Child Pornography

4. Increasing Awareness • Voluntary initiatives are not a panacea, and they are not appropriate to address all forms of piracy,” said the MPAA. “Some voluntary initiatives work well; some have more modest success; and some are simply not effective.” • United Sates losses -$225Billion to Counterfeit Goods - $225 Billion -http://www.havocscope.com/losses-to-counterfeit-goods-by-country/ • As report by the U.S. Chamber of Commerce stated that “counterfeiting and piracy cost the U.S. economy between $200 billion and $250 billion per year and a total of 750,000 American jobs. • According to a study commissioned by the Motion Picture Association of America (MPAA), 74 percent of consumers surveyed in a study stated that they first found a website offering pirated materials through a search engine. • 58 percent of searches with keywords such as the movie’s title or names of television shows had links to online piracy sites, according to the report. • 82 percent of search queries that brought a user to a website offering pirated materials was through Google search. This number is in direct contrast with a report released by Google last week. Google claims that just 16 percent of internet users find online piracy sites through a search engine.  • Source:  Eriq Gardner, “Why Hollywood Is Suddenly Marveling Over Piracy Studies,” Hollywood Reporter, September 18, 2013.

5. Dashboard View

7. Dashboard View

8. Fake Pharma

9. Dashboard View

10. Dashboard View

11. ChildPornography

13. Payment Provider Analysis • Major Payment Engines

14. Ad Networks Analysis • Major Ad Networks:

15. Online Anti-Piracy Evolution v1.0 (Self-regulated) Pirate Sites (Wild West) v2.0 Veri-Site Certified™ F I L T E R (X00,000) F I L T E R (4,000)

16. Increasing Awareness • July 2011 : Guidelines released for rogue website screening by ad networksAdam Szubin, Director of OFAC, specifically addressed the growing threat of TCOs, stating that OFAC has been quite active in announcing designations in this area. Also, William F. Wechsler, Deputy Assistant Secretary of Defense for Counternarcotics and Global Threats, recently stated that criminal networks have harnessed “new methods of doing business” that must be challenged. TCOs have become “adroit at harnessing information technology tools, seizing the opportunities presented by the accelerating velocity of information flows, the proliferation of online money transfer, and the general anonymity of virtual exchange to increase the scale and scope of their activities while spreading or reducing the risk of detection.”. • July 2011: OFAC specifies SDN and screening guidelinesOFAC adds new designees as IP infringers; OFAC reiterates that all offline KYC requirements are also mandatory online, despite increased difficulty. • July 2011: US President announces anti-Transnational Organized Crime initiativeMission of OFAC is expanded, to include IP infringement, cybercrime, etc. – thereby increasing both OFAC’s jurisdiction and scope.

17. Veri-Site

18. Contact Details Dan PeakChief Executive Officerdaniel.peak@veri-site.com+1.608.632.1868