Client Report – Cyber Liability Focus

Golden 1 Credit Union ______

Company Profile Credit Details

Location 8945 Cal Center Dr Overall Credit Risk Medium - Risk Sacramento, CA www.goldenone.com Number of Legal Derogatory 3 Company Type Non-Profit Items Liability Amount $480.00 Formerly Known As N/A Experian Intelliscore 61.83 SIC Code 6062 SIC Code Description Credit Unions, Not Federally Chartered Experian Intelliscore Percentile 46 % of companies score lower and have higher credit risk

Established 2002 Experian Commercial IntelliscoreSM is an all-industry commercial model using business information to predict business risk. Its Sales (in millions) $266.46 predictiveness is among the best on the market today The objective of the Commercial Intelliscore Model is to predict seriously Employees 1292 derogatory payment behavior. Possible score range from 0 to 100, where 0 is high risk and 100 is low risk Total OSHA Violations N/A -Liability Amount is the total dollar amount of debtor’s legal liability, OSHA is an arm of the Department of Labor that conducts inspections of company including accounts in collection, tax liens,judgments and/or bankruptcies facilities with the goal of preventing work-related injuries, illnesses and deaths. -The Number of Legal Derogatory items are the sum of Tax-Lien Worksites that do not meet health and/or safety standards at the time of inspection may Count, Bankruptcy,Judgment, Collection-Counter and UCC Derog receive an OSHA violation. Business Description Golden 1 Credit Union is one of California's leading financial cooperative, and the seventh largest credit union in the U.S. with more than $7 billion in assets and over 600,000 members. They have more than 80 branches, 270 ATMs and 30,000 network ATMs nationwide. Their non-cash offices are conveniently located within places of business. Founded by a group of California state employees in 1933, Golden 1 is a membership financial cooperative which is owned by its members. In keeping with the credit union philosophy of people helping people, Golden 1 offers its members a wide range of low-cost consumer financial products and high-quality service.

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Key Personnel Name Age Title Officer Since Donna A. Bland N/A Chief Executive Officer N/A

Manuel M. Mateo N/A Secretary N/A

Charles Goss N/A Senior Vice President N/A

Tamara Ferrin N/A Senior Vice President N/A

Tom Genessy N/A Senior Vice President N/A

Leonard Gzesh N/A Senior Vice President N/A

Tammy Davis N/A Senior Vice President N/A

Scott Ingram N/A Senior Vice President N/A

Diane Senna N/A Vice President N/A

Paul Sidhu N/A Vice President N/A

Kate Himes N/A Vice President N/A

James Anderson N/A Vice President N/A

Keven Gray N/A Vice President N/A

Michael Popp N/A Vice President N/A

Chad Carrington N/A Vice President N/A

Kara Giano N/A Vice President N/A

Edward Marr N/A Vice President N/A

John-David Phelps N/A Vice President N/A

Robert Garrison N/A Vice President N/A

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Top Company Cyber Liability Cases by Settlement Amount Company Acc/Filing Amount Category Subtype Docket Number Court State Date (in millions) Golden 1 Credit Union 5/1/2001 $0.120 Cyber/Identity Risks Identity Theft/Fraudulent Unknown California Use or Access Between May 2001 and October 2001, the Golden 1 Credit Union (Golden 1) incurred a loss of $120,000 due to a credit card and identity theft scam. A former employee of the credit union participated in an elaborate scheme to defraud Golden 1 clients. The employee, who had access to the Golden 1 computer system illegally obtained confidential client information on approximately 30 Golden 1 customers. She provided the customers' information to an accomplice on a bi-monthly basis. The information contained customer's contact information and credit card numbers. The accomplice used the stolen credit card numbers to reserve hotel rooms in the Sacramento and Las Vegas areas. He then enlisted the help of two other women and sold the rooms online at a discounted price. The accomplice also used the stolen credit card numbers to purchase airline tickets. In late October, internal security at Golden 1 discovered the employee's illegal computer use and notified local authorities. Soon after, both the employee and the accomplices were caught by authorities. All of the perpetrators pleaded guilty and in May 2002, the employee was placed on three years probation and the male accomplice was sentenced to 27 months in federal prison for conspiracy, wire fraud and credit card fraud. He was also ordered to pay restitution. Golden 1 Credit Union, 6/19/2002 Cyber/Identity Risks Identity Theft/Fraudulent The Use or Access Golden 1 Credit Union executives are trying to learn the identity of a Sacramento-area business that may have played a role in theft of ATM card data. Manuel "Manny" Mateo, chairman of Golden 1's board of directors, said a merchant or an employee of an area merchant apparently obtained both credit card and matching PINs, or personal identification numbers, from some customers in recent weeks. In common, he said, was the accessing of these customers' Golden 1 accounts from ATM cards in San Francisco. "The staff didn't start to see patterns until late last week," said Mateo. Mark L. Krotoski, assistant U.S. attorney in Sacramento, said while his office had not yet been contacted, such credit card duplication is a form of identity theft "that our offices take seriously." He said, however, that it was unusual that both the card and the card data fell into thieves' hands. Mateo noted that no Golden 1 customer would suffer any losses because of the thefts. He also said the problem likely was not unique to Golden 1 but could be perpetrated on customers of other financial institutions as well.

Potential Insured Losses based on Industry Experience (Cyber Liability)

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Top Industry Cyber Liability Cases by Accident/Filing Date Top Industry Cyber Liability Cases by Settlement Amount

Company Acc/Filing Amount Category Subtype Company Acc/Filing Amount Category Subtype Date (in millions) Date (in millions) Vermont State 9/10/2012 Cyber/ Digital Data Health Facilities 1/1/1998 $1.034 Cyber/Identity Identity Employees Identity Risks Breach, Loss, Fed Credit Risks Theft/ Credit Union or Theft Union Assc Fraudulent Use or Access 80,000 Social Security numbers, personal financial information for VSECU lost: Two data tapes containing the Social Security numbers and personal Credit Union Loan Officer Charged with Identity Theft: An FBI investigation led fina... to charges of embezzling money and aggravated identity theft in a thre... Citizen's Equity 11/4/2011 Cyber/ Digital Data Treasury Credit 5/20/2010 $0.100 Cyber/Identity Identity First Credit Identity Risks Breach, Loss, Union Risks Theft/ Union or Theft Fraudulent Use or Access CEFCU notifies customers of breach: PEORIA, Ill. - The identities and account numbers of a "small percentage" of CEFCU customers in the On May 20, 2010, organized cyber thieves stole more than $100,000 from Pekin-Peoria a... Treasury Credit Union in Salt Lake City in a brazen online robbery that involve... Harborone 5/9/2011 Cyber/ Digital Data Beacon 2/5/2008 $0.030 Cyber/Identity Identity Credit Union Identity Risks Breach, Loss, Community Risks Theft/ or Theft Credit Union Fraudulent Use or Access HarborOne says 800 people affected by breach at Randolph branch: The assailant who attacked a courier on May 9 at the HarborOne Credit Union Bank employee charged in identity theft: Louisville, Ky. - It's not your typical branch in... case of identity theft, which usually involves someone stealing from ... Jeanne D'Arc 12/27/2010 Cyber/ Digital Data Commonwealth 6/1/2000 $0.000 Cyber/Identity Improper Credit Union Identity Risks Breach, Loss, Credit Union, Risks Disposal/ or Theft Inc. Distribution, Loss or Theft Lowell, Massachusetts-based Jeanne D'Arc Credit Union recently notified (Printed the New Hampshire Attorney General's Office of a breach that occurred Records) when an ... On January 12, 2010, Plaintiffs Norma Wiles, Thomas Wiles, Theresa Gibson Boeing 11/24/2010 Cyber/ Phishing, and Wanta Evitt, all Kentucky residents, filed the proposed class action aga... Employees' Identity Risks Skimming Credit Union Vermont State 9/10/2012 Cyber/Identity Digital Data Employees Risks Breach, Loss, On November 25, 2010, prosecutors have filed charges against two men Credit Union or Theft believed to have defrauded hundreds of Boeing Employees Credit Union (BECU) membe... 80,000 Social Security numbers, personal financial information for VSECU lost: Two data tapes containing the Social Security numbers and personal fina... Washington 11/23/2010 Cyber/ Improper State Identity Risks Disposal/ Citizen's Equity 11/4/2011 Cyber/Identity Digital Data Employees Distribution, First Credit Risks Breach, Loss, Credit Union Loss or Theft Union or Theft (Printed CEFCU notifies customers of breach: PEORIA, Ill. - The identities and account Records) numbers of a "small percentage" of CEFCU customers in the Pekin-Peoria a... ID theft bonanza left unsecured at state building: TACOMA, Wash. -- When Harborone 5/9/2011 Cyber/Identity Digital Data we handed Lyle Lippel a set of documents that could have been used to Credit Union Risks Breach, Loss, steal h... or Theft Community 10/20/2010 Cyber/ Digital Data HarborOne says 800 people affected by breach at Randolph branch: The First Credit Identity Risks Breach, Loss, assailant who attacked a courier on May 9 at the HarborOne Credit Union Union or Theft branch in... On October 20, 2010 Community First Credit Union was breach. Over Jeanne D'Arc 12/27/2010 Cyber/Identity Digital Data 1,600 consumers that applied for employment online using the company's Credit Union Risks Breach, Loss, website was a... or Theft Fairwinds 10/14/2010 Cyber/ Identity Lowell, Massachusetts-based Jeanne D'Arc Credit Union recently notified the Credit Union Identity Risks Theft/ New Hampshire Attorney General's Office of a breach that occurred when an ... Fraudulent Use or Access Boeing 11/24/2010 Cyber/Identity Phishing, Employees' Risks Skimming Credit Union Worker Accused Of Stealing Money: LAKE COUNTY, Fla. -- A Credit Union credit union employee and the mother of a death row inmate, was indicted Thursda... On November 25, 2010, prosecutors have filed charges against two men believed to have defrauded hundreds of Boeing Employees Credit Union Treasury Credit 5/20/2010 $0.100 Cyber/ Identity (BECU) membe... Union Identity Risks Theft/ Fraudulent Washington 11/23/2010 Cyber/Identity Improper Use or Access State Risks Disposal/ Employees Distribution, On May 20, 2010, organized cyber thieves stole more than $100,000 from Credit Union Loss or Theft Treasury Credit Union in Salt Lake City in a brazen online robbery that (Printed involve... Records) Treasury Credit 5/20/2010 Cyber/ Identity ID theft bonanza left unsecured at state building: TACOMA, Wash. -- When we Union Identity Risks Theft/ handed Lyle Lippel a set of documents that could have been used to steal h... Fraudulent Use or Access On May 20, 2010, unidentified perpetrators started transferring funds out of an internal account at Treasury Credit Union, a financial institution tha...

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Recent News

Three males on the run after robbing bank [The Bakersfield Californian] 03/13/2013

March 12--Three unidentified males fled in a car after robbing The Golden 1 Credit Union bank on California Avenue Tuesday afternoon.

The Bakersfield Police Department went to a call of an armed robbery at 4106 California Ave. at about 2:27 p.m.

Customer Martha Mack, 56, who was in line to make a payment, said three men entered the bank with black masks; one of them had a gun and one had a plastic bag.

"I turned around and I heard them say to get down on the floor," Mack said.

"I started praying because they also said someone was going to die," she said with tears in her eyes.

BPD spokeswoman Michaela Beard said the three suspects demanded money from employees and one employee was struck with a blunt object.

The mother of the injured employee waited anxiously outside the bank as police investigated. With tears in her eyes, Hilda Zuniga described the phone call she received from her daughter.

"My daughter Irene called me crying hysterically that she had been hit on the head because they had just robbed the bank," Zuniga said. "She told me that they had told her that if she didn't give them the money she was going to die."

The suspects left with an undisclosed amount of money.

One male was identified as wearing a gray hooded sweatshirt, the second male was wearing a dark blue sweatshirt and the third male was wearing a red sweatshirt.

Rise in Debit Spurs Mobile Payments at Golden 1 Credit Union [Payments Source (Online)] 03/12/2013

At Golden 1 Credit Union , consumers' habit of favoring debit cards over cash created an opportunity to promote mobile paymentswith an added lure of integrating other mobile services.

"With the increased use of debit cards, consumers have less cash with them, so this provides the ability to provide person-to-person payments directly to person that you want to pay rather than through a vendor or with a check," says Donna Bland, president and CEO of Golden 1 Credit Union , an $8 billion-asset Sacramento- based credit union that has about 625,000 members.

Golden 1 is using newly integrated tech from Fiservthe tech vendor recently combined its Popmoney person-to-person service with its Mobiliti mobile banking and payments technology. The system allows people to use an email address or mobile phone number to initiate the transaction.

In addition, "the members have a one-stop location where they can go into a mobile app and see their account information and make a payment transaction with the phone," Bland says.

The credit union already offered some connection in the past between person-to-person payments and mobile banking, but it required the use of Web content on the mobile screen. This practice provided a poor navigation experience, Bland says.

Golden 1 uses Fiserv for most of its mobile financial services, and also offers mobile account transfers, mobile remote deposit capture and electronic bill payments. The credit union also hopes to add other financial serves to the mobile person-to-person integration, but thus far has been reluctant to offer a full mobile wallet due to security concerns. "At some point in the future we will, but it's still early-stage at this point," Bland says.

Fiserv has about 600 clients live with the integrated offering and is working with several hundred additional clients on deployment. For new institutional users, the combo is plug-and-play. "It's fully integrated out of the box," says Steve Shaw, vice president of strategic marketing for digital channels and electronic payments for Fiserv.

While not disclosing a firm deployment calendar, Fiserv plans to integrate other mobile services to mobile payments over time, such as personal financial management.

"This [person to person integration] is a phase of bringing in many types of information and money movement capabilities into the digital experience as we can," Shaw says.

Fiserv's broad tech bench to pull off these integrations has come via a series of acquisitionsincluding mobile banking provider mCom, payments provider CheckFree and Popmoney's developer, CashEdge.

These purchases give Fiserv direct oversight over development and quality control, Shaw contends. "We can certify that we have the right tech and the right people in place," Shaw says.

As a number of emerging payment companies turn to sharing and third party developers to build out their offerings, larger tech companies are well-positioned to acquire these products after they have been tested in the market.

"In some ways you could look at this as a cycle rather than a trend. Larger firms open up and allow smaller innovative firms to test out new products and solutions," 6

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says Rick Oglesby, a senior analyst with Aite Group. "When these new products or solutions stick, the larger firms can buy them up and use them to increase their own offerings. Those that don't stick fall by the wayside and the larger firms haven't had to suffer the losses associated with that."

Among Fiserv's rivals, Jack Henry is also developing new person-to-person capabilities for mobile devices. The core banking vendor offers mobile banking and payments in part through its GoDough mobile technology.

"Mobile devices are much more accessible and easier to carry around," says Greg Adelson, group president at Profitstars, a unit of Jack Henry that specializes in financial services software in areas such as mobile and imaging and payments processing technology.

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