1. Challenges of Identity Fraud Chris Voice, VP Technology

2. © Copyright Entrust, Inc. 20052 We are Security Specialists… Top 12 security software company with ~ $100M in annual revenues Industry pioneer and leader, with 500 employees and 100+ patents Best in class service and support, and integration for leading technology vendors Strong balance sheet, with significant cash balance and no debt –Publicly-listed (NASDAQ: ENTU)

3. © Copyright Entrust, Inc. 20053 Definitions Identity TheftIdentity Fraud

4. © Copyright Entrust, Inc. 20054 Identity Theft Incidents

5. © Copyright Entrust, Inc. 20055 2005 Major Identity Theft Incidents

6. © Copyright Entrust, Inc. 20056 ?

7. 7 ?

8. 8  Source: www.mailfrontier.com

9. © Copyright Entrust, Inc. 20059 Phishing Reports Received Nov ’04 – Nov ‘05 88% Year over Year Increase

10. © Copyright Entrust, Inc. 200510 More Complex Attacks

11. © Copyright Entrust, Inc. 200511 Password Stealing Malicious Code URLs Over 300% in Seven Months

12. © Copyright Entrust, Inc. 200512 Online Identity Fraud Influencing Consumer Behavior IDC Financial Insights: “…6% admitted to switching banks to reduce their risk of becoming a victim of identity theft.” Forrester: “…14% of online consumers have stopped using online banking and bill pay due to email fraud concerns.”

13. © Copyright Entrust, Inc. 200513 Online Identity Fraud Influencing Consumer Behavior Gartner: “…nearly 14 percent of them [on-line bankers] have stopped paying bills via online banking." Entrust: “…18% of consumers have decreased or outright stopped doing on-line banking in the last 12 months because of concerns of identity security..”

14. © Copyright Entrust, Inc. 200514 Driving Legislative Impacts

15. © Copyright Entrust, Inc. 200515 Legislation Have introduced Data Security Legislation Have Not Introduced Data Security Legislation

16. © Copyright Entrust, Inc. 200516 Financial Service Mandates FFIEC considers single-factor authentication…to be inadequate for high-risk transactions involving access to customer information or the movement of funds to other parties. Financial institutions should implement multifactor authentication, layered security…by end of 2006.

17. © Copyright Entrust, Inc. 200517 How Can Security Help People ProcessesTechnology Strong Authentication Encryption Content Control

18. © Copyright Entrust, Inc. 200518 Encryption Two-thirds of fresh and critical data is on employee laptops and desktops – not the servers. Gartner, April 2004 Two-thirds of fresh and critical data is on employee laptops and desktops – not the servers. Gartner, April 2004 Companies typically lose 5-8% of their laptops per year. The FBI estimates that 50% of network penetration is due to information derived from a stolen laptop. Meta, January 2005 Companies typically lose 5-8% of their laptops per year. The FBI estimates that 50% of network penetration is due to information derived from a stolen laptop. Meta, January 2005 By year-end 2007, 80% of Fortune 1000 enterprises will encrypt critical “data at rest” (0.8 probability) Gartner, April 2004 By year-end 2007, 80% of Fortune 1000 enterprises will encrypt critical “data at rest” (0.8 probability) Gartner, April 2004

19. © Copyright Entrust, Inc. 200519 Persistent Data Encryption

20. © Copyright Entrust, Inc. 200520 Benefits of Persistent Data Encryption Any person or business that conducts business in California…shall disclose any breach of the security of the system following discovery or notification of the breach in the security of the data to any resident of California whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person. California SB1386

21. © Copyright Entrust, Inc. 200521 Content Scanning Automated Policy Enforcement Detection and Blocking across broad set of outbound protocols Employees, Partners, Customers Employees http:// ftp:// IM

22. © Copyright Entrust, Inc. 200522 Stronger Mutual Authentication Understanding and Countering the Phishing Threat A Financial Services Industry Perspective Top 3 Recommendations: 1.Focus on Mutual Customer/Financial Institution Authentication 2.Improved Fraud Screening 3.Industry-wide Attack Method/Mitigation Information Sharing Report Defend Detect Prevent Solution Areas:

23. © Copyright Entrust, Inc. 200523 The Authentication Challenge Usability & Cost Security Minimize customer experience impact – Only impact user experience with stronger authentication when necessary – The right authentication for the right risk level – at the right time Fraud Risk

24. © Copyright Entrust, Inc. 200524 The Authentication Challenge – Risk-based Authentication Transaction Sequence Increasing Impact of Fraud Login Check Balance Register Bill Funds Transfer Risk based authentication requires a range of capabilities Increasing Authentication Strength

25. © Copyright Entrust, Inc. 200525 New Authentication Technologies Authentication Strength Purchase & Deployment Cost Passwords One-Time-Password Tokens Smartcards Traditional Biometrics $

26. © Copyright Entrust, Inc. 200526 Range of Risk-Based Strong Authentication Policy-based authentication allowing single authentication layer to meet multiple business requirements –Per transaction, per user, per application, per LOB… Machine Auth Authorized set of workstations Knowledge Auth Challenge / response questions Out-of-Band One-time-passcode to mobile device or phone Scratch Pad Auth One-time password list Grid Auth Grid location challenge and response Additional Technologies to Come

27. © Copyright Entrust, Inc. 200527 Unique authentication card issued to each user Random characters in grid with row/column headers Separate plastic card or on existing card Example – Grid Authentication Stand-Alone CardCard Add-On

28. © Copyright Entrust, Inc. 200528 Grid Authentication Process User enters ID & Password as is done today. Personal ID ********

29. © Copyright Entrust, Inc. 200529 Grid Authentication Process cont’d

30. © Copyright Entrust, Inc. 200530 Grid Authentication Process cont’d 1 2 3

31. © Copyright Entrust, Inc. 200531 Authentication Needs to be Mutual Easy to use mechanisms for customers to recognize they are on the right site. Message Replay Auth User entered message Serial Replay Auth Grid card serial number Image Replay Auth User selected image

32. © Copyright Entrust, Inc. 200532 Announced Wins in 2H05

33. © Copyright Entrust, Inc. 200533 Summary Identity Fraud will change the way organizations protect your sensitive information –May require legislation to drive real action Identity Fraud will change the way you interact with your financial institutions –Focus on addressing your confidence to drive continued internet adoption

34. Thank You chris.voice@entrust.com www.entrust.com 888-690-2424