2. Monty Faidley Director, Market Planning

3. The Iowa story 3

4. Identity information is everywhere 4

5. Battle against identity theft has been lost 5 IDENTITIES TAKEN 145,000,000 eBay breach 80,000,000 Anthem breach 21,000,000+ OPM breach 1,000,000 fingerprints OPM breach 827,000,000+ Record breaches since 2005

6. Battle against identity theft has been lost 6 Usable Social Security Cards are available for $25 A Driver’s License is available for $50 A high quality U.S. Passport is available for $125 Identities as a Commodity

7. Bricks and mortar – how it used to be 7 Benefits Human-Based Biometrics – Facial Recognition Real Time Risk Analysis – Look someone in the eye Physical Presence limits mass fraud schemes Challenges Customer Service Complaints Inconvenient for Constituents Inefficient Processes Long Lines Access Services in a Physical Location County Office Face-to-Face Interaction Verification of Documents on the Spot Paper-based Interaction

8. From “in line” to online 8 Access to Services is now Electronic Over 6 Billion annual visits to Government Websites 66% Access via Desktop, 34% Mobile or Tablet 64% of Americans own Smart Phones Benefits Increased Efficiency Decreased Processing Time Improved Customer Service Constituent Convenience Challenges Identity Information Changes Faster than Government can Keep Up Explosion of Identity Theft and Fraud Rapidly Evolving Fraud Schemes Proofing and Identity Online

9. Government agencies are under attack 9

10. First, verify the identity exists 10 Current Approach Challenges Best Practices Data Cross MatchFraudsters Can Already Beat It Data Sharing Across Boundaries Death Master File Social Security Administration State incarceration Bought the Death Master File Partial name matching Check real-time identity activity Does the identity appear anywhere in the State? Does the identity show up anywhere else? Partial Matching of Name/SSN: M. Faidley 999-99-1234 Monte Faidler 999-00-1234 (match) Montana Faids 000-99-1234 (match) Mountain Faidstone 000-12-1234 (match)

11. Then, confirm this is the owner of the identity 11 Current Approach Challenges Best Practices Manual VerificationToo Easy to BeatMultiple Layers of Identity Verification Photocopy of Driver’s License Photocopy of lease / utility bill Note from your Mom Photocopy is easy to fake Identity documents are cheap Knowledge based quiz One time password Verify Driver’s License in real time Biometrics Risk assessment – geolocation, IP, device

12. Good news: It actually works 12 $24 million in Tax Refund Fraud in under 1 year