Top Strategies for 2016 Protecting Your Brand and Content Online Akino Chikada Olesia Klevchuk Sr. Product Marketing Manager Sr. Product Marketing Manager

© 2016 MarkMonitor Inc. All rights reserved. Agenda . 2015: Year in review • Multi-channel marketing • Digital Media • Fraud • Online Shopping Barometer . 2016: Trends • Darknet • 3D Printing • Digital Media • Mobile • Malware 2

Year in Review 2015 1 Multi-Channel World

 Rise of multi-channel marketing  Mobile: a main gateway to the : growing channel for brand abuse

4 Rise of Multi-Channel Marketing Growing channel for brand abuse . 63% of budgets are invested in online channels . Brands, their partners and fraudsters are using multi-channel marketing . Each new channel comes with risks to brand owners . Need for consistent brand and product image and messaging

Put in place comprehensive multi-channel monitoring program to discover and act on brand infringements

5 Source: Lewis PR Mobile as the Main Internet Gateway Growing channel for brand abuse . U.S. consumers spend more time U.S. Retail M-Commerce Sales 2013-2019 $ Billions accessing Internet using mobile devices . M-Commerce already accounts for 22% of total e-retail channel and is set to grow faster than e-commerce . Thousands of new less secure app stores spring up across the internet: . Unauthorized and outdated copies of apps . Malicious activity Get visibility into how and where your brands and trademark terms are being used in mobile space

6 Source: Statista Social Media A growing channel for brand abuse

. Social Media continues to contribute the majority of new content and adoption rate increases

. Noticeable brand abuse • Impersonation / Fan pages • Promotion and proliferation of websites selling counterfeit • Fraudulent links – e.g. phishing pages • Fake special offers • New Social Media sites, with vast adoption

Get visibility into how and where your brands and trademark terms are being used in social media space

7 2 Digital Media

 Growing popularity of streaming video  Mobile: key device to consume digital media

8 Video Streaming Online Piracy is Growing Fast Often Faster than Other Types of Content . Growing appetite for streaming content . Shift in piracy from downloading to streaming content . Over the 17 months, infringing video streaming content has grown faster than other content types . 449% Growth in TV Titles . 269% Growth in Movie Titles Keep up with a shifting digital piracy landscape and include streaming platform as a part of your monitoring program

9 Source: MarkMonitor Mobile: Ultimate Entertainment Device Increasing number of piracy cases . Low number of infringements detected Mobile ISP Infringements for mobile devices 12,703,860 . Fast year on year growth rates

. Disruptive consumers technologies 9,241,458 provide additional challenges • Live streaming apps 3,856,706 2,771,390 775,279

2011 2012 2013 2014 2015 Monitor mobile channel for piracy abuse

10 Source: MarkMonitor 3 Fraud Continues to Evolve

 Phishing attacks targeting non-financial industries  Spear-phishing continues to be a major problem  Rise of Business Email Compromise scams

11 Phishing Targeting Non-Financial Industry

. Phishing attacks targeting non-financial industry increased ~400% since January 2014 Non-FI Companies 60000

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May-15 May-14 Protect your customers and prospects from phishing scams

12 Source: MarkMonitor Spear-Phishing . Spear-Phishing Email: Most Favored APT Attack Bait (TrendMicro research, 2012; by now a known industry fact)

. APT is the #1 security problem globally

. Applies to all verticals

13 Business Email Compromise Scams A sophisticated scam targeting businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The scam is carried out by compromising legitimate business e-mail accounts through social engineering or computer intrusion techniques to conduct unauthorized transfers of funds.

Former employee Cybersquatted domain

Single recipient from different geography

14 4 Online Shopping Barometer

 Globally, consumers do 34% of their shopping online  24% of consumers have bought a product online that turned out to be fake  More than half of consumers (56%) have been on the receiving end of counterfeit emails  Alarmingly 20% of consumers knowingly continue with a purchase after finding themselves on a website selling fake goods

15 Source: MarkMonitor Confidence in Security & Platform / Device . 64% of global consumers are worried about their online security . Generation gap: • 53% of 18-34 year olds are confident shopping via smartphone vs 17% of those aged over 55

Maintain a secure and robust Brand Protection program

16 Sources: MarkMonitor; Interactive Advertising Bureau 2016 Trends 1 and Darknet

 Growing interest in the Deep Web and Darknet  Brand Protection strategies in the Deep Web and Darknet

18 Understanding the Internet Landscape

Surface Web Searchable with standard search engines

Deep Web Un-indexed websites / DarkNet Dark Web: web content that exists on the DarkNet DarkNet: Network that can only be accessed with specific , configurations, or authorization The Deep Web is hundreds of times larger than the ‘Surface Web'

19 Brand Abuse Lurking in the Deep Web

. Uncovering brand abuse in the deep web . Enforcement options • C&Ds to website operators • Take-down requests to ISPs • Notices to marketplaces, social media sites, mobile app stores

20 Brand Abuse Lurking in the Darknet . Understand your level of risk • FIs must be monitoring for account information • Those with counterfeiting issues should determine if these marketplaces provide means of mass distribution • All others should: . Determine whether you need regular monitoring OR . Periodic monitoring for changes to the threat landscape . Track abuse over time . Due to , online enforcement difficult . For stolen account or credential information

21 2 3D Printing

 Growing popularity and adoption of 3D printing technology  Impact on Intellectual Property

22 Adoption of 3D Printing Technology

. Worldwide shipment of 3D printers to reach almost half a million units in 2016. • 5.6 million by 2019. (232k in 2015) . Enterprise and consumer demand . Growth driven mainly by sales of low cost entry-level printers • Under $2.5k purchases are driven by schools and universities rather household purchases Adoption of 3D printers still in its infancy

23 Source: Gartner In The News

The FAA Cleared The First 3D Printed Part To Fly In A Commercial Jet Engine From GE

24 3D Printing Impact On IP Protection A New Emerging Threat For Global Brands . Trademarks . 3D printing replacing traditional manufacturing . Consumers creating copies for personal use . Copyright . More companies and individuals assuming copyright for design . CAD available via P2P & pirate sites . Scanning . Ability to scan and replicate products . Shared designs hard to identify

3D Printing presents legitimate threats to right holders

25 Addressing Impact of 3D Printers

. Physical goods companies and Trademarks • Monitor availability of counterfeit products on usual places and specialized 3D stores • Partnerships and licensing • Goods will stop crossing borders . Digital Assets and Copyright • Monitor and detect at the source – CAD files • Threats presented by 3D printing will be similar to those faced by digital media not consumer goods companies Address IP abused caused by 3D printing by focusing on digital goods

26 3 Mobile: New Types of Abuse

 Evolution of mobile channel  Malicious mobile apps are on the rise

27 Evolution of Mobile Channel

. Mobile is evolving into solo channel • Mobile only Marketplaces: Flipcart & Line • Mobile only Social Media • Mobile only banking service: Caixabank . Fueled to popularity and accessibility of mobile devices in developing markets

Expand your mobile channel brand protection program

28 Malicious Mobile Apps Are on the Rise . Less than 20,000 malicious apps in 2012; more than 240,000 in 2013; and more than 390,000 in the first 3 quarters of 2014 . Number of malicious Android applications designed to steal financial data rose almost fivefold in the second half of 2013

29 Source: FireEye 4 Digital Media

 Streaming media will take over everything  Top trends to watch in 2016 in growing importance of streaming audio/visual content

30 Streaming Media Is Taking Over Music: Spotify 75 million users

Gaming: Twitch 45 million users

Video: Netflix 69 million subscribers

Mobile: Periscope 10 million users

31 Launch of YouTube Red Google moves into subscription area

. New paid subscription model to ad-free streaming Ad-free videos service . Ability to download and view videos offline . YouTube Red will create additional revenue stream from Save offline subscription . 2016 will show result of the move and address concerns around monetization Background Play

Content owners need to ensure they have effective monitoring and enforcement using fingerprint and Content ID

32 New Type of Piracy: Powered Streaming App

. Allows you to watch thousands of movies instantaneously . In the U.S., software was downloaded onto millions of devices . Interface resembles that of popular legitimate streaming platforms

2016 will bring more variations of Popcorn Time

33 5 Malware

 Malware is easier to create, and more diversified  Ransomware on the rise

34 Malware Variations

Spyware Banking Trojans Ransomware Remote Access Trojans (RATs) Characteristics: Characteristics: Characteristics: Characteristics: . Key logging . Organizational target . Encrypts files . Installed w/ user . Screen Captures list . Encrypts hard disk application . Print Captures . Configuration Files . Requests payment . Included Backdoor . Pop Ups . Key logging . Allows remote access . Adware . Screen captures . Enables . Print captures Administrative control . DGAs . Key logging . HTML Form Injection

Example: Example: Example: Example: . Trojan: . Shiz . CryptoWall . Back Orifice Win32/Meredrop . Gozi . CryptoLocker . JSocket . Dridex . AlienSpy

35 Ransomware on the Rise

. Designed for direct revenue generation; forces victims to pay the ransom to grant access to their systems, or to get their data back - typically victims are asked to pay in bitcoins . Targets individuals and businesses in all industries . Increase number of incidents involving so-called “drive-by” ransomware, where users can infect their computers simply by clicking on a compromised website, often lured there by a deceptive e-mail or pop-up window

36 Conclusions

. Have visibility into all digital channels to maintain a proactive Brand Protection strategy . Stay on top of the latest tactics leveraged by fraudsters . Continue to educate your customers so they can be your allies in fighting brand abuse

37 Questions? Featured Speakers

Akino Chikada Sr. Product Marketing Manager MarkMonitor

Olesia Klevchuk Sr. Product Marketing Manager MarkMonitor

39 Thank You!

. For information on MarkMonitor solutions, services and complimentary educational events: • Contact via email: [email protected] • Visit our website at: www.markmonitor.com • Contact via phone: US: 1 (800) 745 9229 Europe: +44 (0) 203 206 2220

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