O C T O B E R 2 0 1 5

ID Secured

Report from

V O L U M E 1 : I N V E S T I G AT I N G S U B S C R I B E R P R O F I L E S A N D P AT T E R N S

Letter from CSID

Introduction

I: Investigating Subscriber Profiles and Patterns

The ID Secured Population at a Glance

Secure Samuel

Protected Paul

Breached Barbara

Alerts and Subscriber Behavior

Credit vs. Non-Credit Alerts

II: Market Data

Summary

Active Subscribers

Alerts and Sessions

Restoration Visualized

Understanding ID Secured

About CSID

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TA B L E O F C O N T E N T S

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C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 2

Identity fraud affected a whopping 12.7 million American adults in 20141 and it has been the top complaint received by the FTC for more than three years. Identity theft protection is now a fundamental need, as evidenced by the fact that consumers spent more than $1 billion on identity protection subscriptions last year.2 The magnitude of this industry enables businesses to be privy to a wealth of data that can educate us about the identity fraud landscape and trends. We’re able to understand market sizing, provider scorecards, and even some high level customer profiles. But, there’s still more we can learn about those who are enrolled in identity protection products.

The CSID, a part of Experian, ID Secured report offers an inside look at a group that CSID is uniquely positioned to understand – the global population of individuals who are active subscribers of identity theft protection products. CSID is the “Intel Inside” of a growing industry of identity protection solutions - we power over 80 percent of the retail identity theft protection industry.

By enabling enterprise businesses to bring innovative identity protection and fraud detection products to market, we’ve learned a great deal about the customers that are using these products and have been able to establish an insightful set of benchmarks.

Join us as we dig deeper into the world of identity theft protection, and learn about what motivates and engages those who are ID Secured. We’re excited to share the insights we’ve gained with you.

The ID Secured report you’re about the read is the first of its kind. Keep an eye out for future reports featuring new topics and benchmarks.

Best,

1 2015 Javelin Identity Fraud Survey Report2 2015 Javelin Identity Protection Services Scorecard

Joe RossPresident and Co-Founder, CSID

Readers,

L E T T E R F R O M C S I D

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 3

CSID enables our partners to provide identity theft protection solutions that advance from credit monitoring to include a full suite of identity monitoring services; identity theft insurance provided under policies issued to CSID; full-service restoration; and proactive breach mitigation and resolution. Powering over 80 percent of the retail identity protection industry, we have unique insights into subscribers of these products, for whom we’ve termed “ID Secured.”

Seventy-eight million Americans are concerned about cyber security, but only 30 million are doing something about it.1 The ID Secured population are in this group.

Consumers are enrolling in these products via a number of different channels: a free credit report offer, a comprehensive credit and non-credit paid product, a membership benefit, or even as a result of a breach. The ID Secured population that we’re investigating in this report includes subscribers from all of these use cases.

ID Secured: Volume 1 includes data from a study conducted over a three month period. The data examined was compiled from a sample of 47 subscriber groups of people who fit one of these use cases, and almost the entirety of this population (99percent) is located in the United States.

1 August 2015 LifeLock Investor Deck

Who is ID Secured?

I N T R O D U C T I O N

78 MILLIONAmericans are concerned

about cyber security

30 MILLIONare doing something about it

but only about

40 MILLIONare doing nothing about it

and

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 4

5

Consumers become enrolled in these products through different channels:

• A free credit report offer

• A comprehensive credit and non-credit paid product

• A membership benefit

• A result of a breach

Investigating Subscriber Profiles and Patterns

P A R T I

T H E I D S E C U R E D P O P U L AT I O N AT A G L A N C E

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 7

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The ID Secured population can be broken down into three subscriber profiles.

18%

Secure Samuel is typically a 22- to 54-year old male who has demonstrated a qualified interest in reading technology blogs and reviews, and frequently makes technology-centric purchases online. He is located in a populated state like California or Texas.

Secure Samuel was likely enticed to enroll in an identity theft protection product through a free trial or free use of the product, such as a free credit report, or the product as a free benefit of another program he is already associated with, likely offered through his work or credit card company.

Secure Samuel accesses the product via his desktop computer. Other sites he frequents include:

• 25 – 34-year-old Secure Samuels look at travel sites

• 35 – 44-year-old Secure Samuels look at financial services and employment sites. Those who look at employment sites are more likely to use a mobile phone to access the product

• 45 – 54-year-old Secure Samuels look at real estate sites

S E C U R E S A M U E L

PERCENTAGE OF ID SECURED POPULATION WITH ACCESS TO A PRODUCT THAT IS OPTIMIZED FOR MOBILE WEB PAGES

J A N F E B M A R20%3%

Male, age 25 to 54

Usually accesses portal throughhis mobile device or desktop

Engages with the portal forabout 5 minutes per sign-on

Likely lives in a populatedstate with urban epicenters

Signed up through a site orcompany he already trusts

Signs into the portalabout once per month

Secure Samuel is

most likely to be found in this group

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 9

Z I L L O W

T R U L I A

Y A H O O ! H O M E S

R E A LT O R

R E D F I N

N U M B E R O F U N I Q U E M O N T H LY V I S I T O R S I N M I L L I O N S

36M

23M

20M

18M

6M

THE TOP FIVE REAL ESTATE WEBSITES IN THE US BY VISITS IN 2015

Protected Paul is typically a male between 35 and 64 years of age. Protected Pauls who are between 35 and 44 are likely located in Texas, while those who are between 55 and 64 are more likely to reside in the Midwest.

Protected Paul is also a movie lover, demonstrating an interest in movies of various genres.

Protected Paul is more likely to pay for an identity protection product when compared to other profiles. He may have signed up for his product because it was a benefit offered on his retail credit card.

He usually accesses his product via his desktop computer and spends time on real estate websites when he’s online.

P R O T E C T E D P A U L

Male, age 35 to 64

May have signed up through ano�er on his retail credit card

Likely lives in Texasor the Midwest

Demonstrates a great interestin movies of all genres

Usually accesses portal throughhis desktop computer

More likely to pay forproduct than other personas

6:0

0 PM

6:00 PM

$High-income earners (over

$100K per year) favor

paid products 2015 Javelin Identity Protection Services

Scorecard

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 1 0

Breached Barbara is a 55+ male or female who has been a breach victim and enrolled in an identity protection product as a result.

He or she resides on the east coast, likely living in Pennsylvania, Indiana, South Carolina, or Florida. Similar to Protected Paul, Breached Barbara searches the Internet for movies of all genres and spends a large amount of time on real estate websites when she’s online.

He or she usually accesses products via a desktop computer.

B R E A C H E D B A R B A R A

Male or female, 55+

Signed up because shewas a victim of a breach

Likely lives in aneast coast state

Demonstrates a greatinterest in movies of all genres

Usually accesses portalthrough her desktop computer

Spends a lot of timeon real estate websites

6:00 PM

2:00 PM

ONE BILLIONRECORDS

More than

IBM

EVERY 2 SECONDS

there was a new identity fraud victim

in 2013Javelin Strategy

& Research

1 IN 3New York

residents were data breach

victims in 2013NY Attorney General Eric T Schneiderman

were leaked in 2014

FLORIDA HAS THE HIGHEST PER CAPITA RATE OF REPORT FRAUD AND IDENTITY THEFT COMPLAINTS.FTC Sentinel Network Data Book, 2014

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ID Secured: V O L U M E 1 P A G E 1 1

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Subscriber behavior differs between credit alert recipients and non-credit alert recipients.

A L E R T S A N D S U B S C R I B E R B E H A V I O R

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 1 3

C R E D I T V S N O N - C R E D I T A L E R T S

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 1 4

P A R T I I

Market Data

S U M M A R Y

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 1 6

P R O F I L E

B O U N C E R A T E

A V G S E S S I O N D U R A T I O N

P A G E S P E R S E S S I O N

CSID pulled a sampling of active subscribers and identified the best performing product among this group. The “best performer” is classified as the product with the greatest increase in subscribers during the three-month timeframe of the study. This product was one that offered a paid plan starting at $8 a month and was not a breach product. Its subscriber base increased by 9 percent in February, and another 11 percent in March.

CSID also identified the worst performing product during the three-month study period. This product saw a 57 percent decrease in subscribers in February, and an additional 38 percent decrease in March. This product offered a free or low priced credit report as an incentive to enroll. After the initial month, the base entry price for product membership was $15 a month. This product was also not a breach product.

A C T I V E S U B S C R I B E R S

BEST PERFORMER PRODUCT ENGAGEMENT OVERVIEW

5.34

6:59

23.15%

Protected Paul

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 1 7

A L E R T S A N D S E S S I O N S

ALERTS AND SESSIONS PER SUBSCRIBER

Non-credit alerts per subscriber

Sessions persubscriber

J A N F E B M A R

0.0

9

0.1

9

0.0

7

0.0

8 0.1

0

0.17

80M compromised records

11M compromised records

160K compromised records

152K compromised records

697K compromised records

ANTHEM BREACH

PREMERA BLUE CROSS

METROPOLITAN STATE UNIVERSITY

CAREER EDUCATION CORPORATION OF ILLINOIS

MAJOR BREACHES IN Q1 2015

None

VIRGINIA DEPARTMENT OF MEDICAL ASSISTANCE

CreditMonitoring

Changeof Address

Court &CriminalRecords

CyberMonitoring

PayDayLoanMonitoring

SexOffenderMonitoring

IDENTITYCREDIT

OF IDENTITY THEFT TRIGGERS A CREDIT MONITORING ALERT2014 FTC Sentinel Report

LESS THAN

17%

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ID Secured: V O L U M E 1 P A G E 1 8

MONTH 1

IRS and credit fraud accounted for almost three-quarters of all cases

IRS & CREDIT FRAUD73%

19X

The total number of

in one quarter

RESTORATIONCASES JUMPED

EMPLOYMENT (3.31%)

PAY DAY (1.89%)

STATE TAX (1.89%)

MULTIPLE INQUIRY (1.65%)

MORTGAGE (1.18%)

AUTO (1.18%)

MEDICAL (1.18%)

UTILITY(5.44%)

CHECK/BANK(8.27%)

STUDENT LOAN (0.47%)

MIXED CREDIT (0.24%) CRIMINAL (O.24%)

SSA (0.24%)

CREDIT& IRSrestoration casesby month

MONTH 2 MONTH 3

R E S T O R AT I O N V I S U A L I Z E D

2014 FTC Sentinel Report

Javelin 2015 Identity Protection Services Scorecard

ACTIVE RESTORATION CASES

In 2014, only 29% of providers offered partial to full financial account

monitoring in their packages

The FTC reported that 32.8% of fraud cases in 2014 were related to taxes or wages

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 1 9

Or the time it

takes to drive

from Austin, TX

to NYC!

Or the time it takes to

watch the Super Bowl

– commercials and all!

CSID RESTORATION MINUTES SPENT PER CASE TYPE

CREDIT 400

750

260

320

370

400

450

600

400

350

390

335

550

310

1650

500

IRS

UTILITY

CHECK/ BANK

PAYDAY

SSA

CRIMINAL

MEDICAL

MEDICARE

EMPLOYEMENT

STUDENT LOAN

STATE TAX

MIXED CREDIT

MORTGAGE

AUTO

MULTIPLE INQUIRY

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 2 0

The findings of this inaugural ID Secured report provide unprecedented insight into the global population of individuals who are active subscribers of identity theft protection products. As the “Intel Inside” of a growing industry of identity protection solutions, CSID is uniquely positioned to provide this information. At a glance, the ID Secured population was found to reside primarily in Texas or California, be above the age of 50, and male. They also exhibited unique behavioral characteristics including a love for movies and a tendency to visit employment and real estate websites. Knowing this information provides an opportunity to target individuals outside of these demographic and behavioral groups.

Distinct differences in behavioral and usage habits were also found between credit and non-credit alert recipients, including their preference for product type, the most popular service page they visited, as well as the time of day they use these services. Findings also showed that the more alerts a subscriber received, the more engaged they were in the product.

Another key finding of the report was that as the number of breaches (like those at Anthem, Premera Blue Cross, and Metropolitan State University) increased, the number of alerts and sessions increased, showing heightened subscriber awareness and concern around identity protection when breaches occur.

As we gain a deeper understanding of the population of individuals who are actively taking charge of safeguarding their digital identities through enrolling in identity theft protection services, we are better positioned to reach those who are not enrolling in these services. As data breaches continue to gain momentum with no sign of slowing, it will be increasingly important to effectively reach these unprotected consumers.

Methodology: The data included in this report was collected between January and March 2015. The data was compiled from a sample of 47 subscriber groups of individuals who enrolled in identity protection products through a free credit report offer, a comprehensive credit and non-credit paid product, a membership benefit, or as the result of a breach. Almost the entirety of this population (99 percent) is located in the United States.

Overview of Findings

U N D E R S TA N D I N G I D S E C U R E D

SECURESAMUEL22- to 54-year-old male with an interest in reading technology blogs

PROTECTEDPAULa middle-aged male from Texas or the Midwest who prefers mid-tier identity protection services

BREACHEDBARBARAa 55+ male or female who has life experience and the experience of being a breach victim

THE SURVEYED POPULATION CAN BE BROKEN DOWN INTO

THREE PROFILES:

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 2 1

CSID, a part of Experian, is a leading provider of global identity protection and fraud detection technologies for businesses, their employees, and consumers. With CSID’s enterprise-level solutions, businesses can take a proactive approach to protecting the identities of their consumers all around the world. CSID’s comprehensive identity protection services extend beyond credit monitoring to include a full suite of identity monitoring and fraud detection services; identity theft insurance provided under policies issued to CSID; full-service restoration services; and proactive data breach services.

www.csid.com

Join CSID on Facebook at facebook.com/CSID and on Twitter at @CSIdentity.

For more information, please contact Director of Marketing, Cody Gredler at cgredler@csid.com.

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A B O U T C S I D

©2015 CSID

C S I D . C O M / R E S O U R C E S

ID Secured: V O L U M E 1 P A G E 2 2

C S I D . C O M

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