How iovation ReputationManager works ™

Nothing beats fraud like iovation

Social Networking
Sites:
A Target for Abuse
Online social networking has exploded in popularity. In just a few short years, it has influenced the way we
socialize and interact with one other across the globe. This growth has attracted abusive and predatory behavior.

The Web’s built-in anonymity makes member identification difficult, and accountability nearly impossible.
Consequently, the industry has been an easy target for spammers, scammers and predators. These offenders
pose as someone they are not and prey on unsuspecting members, causing emotional and financial harm to
members while tarnishing the reputation of the site. However, it is the loss of trust in this burgeoning industry that
is the greatest threat. Whether measured in tarnished reputations, operational inefficiency, or dollars lost, the
effective control of abusive activities needs vigilance when operating a social networking Web site.

Social networking sites must also be responsive to regulatory pressures related to the more serious child
predation and harassment issues. The industry has been accused of allowing sexual predators to directly solicit
kids. According to a recent Youth Internet Safety Survey, online harassment and cyber bullying of youth grew 50%
from 2000 to 2006.

Spectrum of abuse facing Social Networks

Abusive Language/Bullying Spam Scam/Financial Fraud Predatory Behavior

Nuisance Criminal

“After an extensive search for a solution that would give us the desired level of security and protection, iovation
was the clear choice for us. By proactively identifying known fraudsters and their devices across iovation’s
reputation network, we can better prevent fraudulent activities and inappropriate behavior that can impact the
integrity of our site, and most importantly, our members’ trust, confidence and satisfaction.”
- Grant Carter, President
Capazoo.com
 How iovation ReputationManager works ™

Scammers are typically repeat offenders and target multiple sites. Once detected, they return using a different
profile/identity. The industry needs a solution that can detect and shut down scammers so they can’t hide behind
changing profiles and cause harm even when they are visiting a site for the first time.

Solution: iovation ReputationManager

iovation ReputationManager is the only proven online abuse and fraud management solution that can provide this
level of protection for any Web site and for the industry as a whole. iovation focuses on the scammers’ device
as the nexus of their activities and exposes them by accurately identifying their device across social networking
sites and beyond. When abusive behavior is detected against a device or profiles/account on a site, all associated
devices and profiles on that site can be quickly exposed and flagged at once to prevent repeat offenders from
hiding behind multiple profiles and devices. The information can be shared with other subscribing sites for pro-
active protection against scammers.

The table below highlights the benefits cited most often by existing iovation customers:
Increase Increase operational protect site
Benefits
profitability efficiency reputation
Exposes scammers and helps sites keep √ √ √
them out without impacting good members
Reduces abusive behavior, such as spam √ √ √
and chat abuse
Shuts down the revolving door of √ √
scammers
Protect site reputation and increases
√ √ √
members’ trust and satisfaction
Reduces payment and chargeback fraud √ √
Increases efficiency and reduces √ √
operational costs of screening for abusers
Enables geographic risk assessment √ √

Can share evidence of known abusers among √ √ √

networking sites and beyond
Helps with existing and emerging regulatory √ √
requirements

As one networking site executive lamented-- “we identify IP addresses originating from certain countries as a high
risk. Now we are seeing IP addresses being used from the United States. So it’s essentially someone overseas
working with someone in the States who, let’s say, has an AOL or Comcast account, and they are working in
tandem. It makes it more difficult for us to detect them.”
 How iovation ReputationManager works ™

1 At member login and/or prior to any high risk interaction, the subscribing social networking site requests the
reputation of a device by providing member profile/account and device identifiers without any personally identifiable
information (PII).

2 iovation ReputationManager associates the profile/account ID and the device information and sends the information
to the Device Reputation Authority(DRA) platform for analysis.

3 The DRA exposes all abusive and suspicious associations between devices and profiles/accounts—even across
multiple subscribing sites—without sharing any personally identifiable information.

4 Within the DRA’s repository, associated devices and profiles/accounts can be red-flagged (O) when negative
evidence (such as spam, chat abuse, or chargebacks) is submitted by any subscribing site.

5 The iovation ReputationManager subscribers can then protect their social networking site and members by making
decisions based on their own criteria for allowing or rejecting member interactions.

For more information on iovation ReputationManager and other iovation Reputation Services to combat online fraud
& abuse visit www.iovation.com.

Sales inquiries:
sales@iovation.com
General business
and partnership inquiries:
partners@iovation.com
111 SW Fifth Avenue, Suite 3200
Portland, Oregon 97204 Legal Notice: © iovation 2007 All rights reserved. All
+1 503.224.6010 product or service names mentioned herein are the
trademarks of iovation or their respective owners. DS
www.iovation.com DS 200711/02