Veri-Site Overview and Use Cases Prepared for: CWAG 1.

Veri-Site Overview and Use Cases

Prepared for:CWAG

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Rise of “Rogue” Websites

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Legitimate Businesses

Advertisers, Agencies, & Ad Networks

Intellectual Property (IP) Holders

Payment Processors

Banks & OtherFinancial Institutions

Internet Service Providers (ISPs)

Other BusinessesOperating Online

“Rogue” Websites

Intellectual Property (IP) Piracy

CounterfeitGoods

FakePharmacies

ChildPornography

Cybercrime& Fraud

Terrorism & Related

Increasingly, criminal enterprises – via “rogue” websites – are manipulating unwitting businesses in order to drive ill-gotten financial gain.

Criminal Proceeds

• Ad Revenue• Payment for goods

and services• Malware, cybercrime

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Rise of “Rogue” Websites

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How are US citizens negatively impacted?

• Shoppers don’t get what they ordered: – Amazon shoppers 2012 – 7% counterfeit goods per International Chamber of Commerce

– Fake pharmaceuticals and consumer health risk

• Malware and Cybercrime:– Pirate sites 2010 – 12% distributing malware per Symantec

• Jobs– Intellectual Property Theft regarded as a strategic risk (US White House)

– NPD reports that only 37 % of music acquired by U.S. consumers in 2009 was paid for

• Exposure to Pornography including Child Pornography

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Increasing Awareness

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Voluntary initiatives are not a panacea, and they are not appropriate to address all forms of piracy,” said the MPAA. “Some voluntary

initiatives work well; some have more modest success; and some are simply not effective.”

•United Sates losses -$225Billion to Counterfeit Goods - $225 Billion -http://www.havocscope.com/losses-to-counterfeit-goods-by-country/

•As report by the U.S. Chamber of Commerce stated that “counterfeiting and piracy cost the U.S. economy between $200 billion and $250 billion per year and a total of 750,000 American jobs.

•According to a study commissioned by the Motion Picture Association of America (MPAA), 74 percent of consumers surveyed in a study stated that they first found a website offering pirated materials through a search engine.

•58 percent of searches with keywords such as the movie’s title or names of television shows had links to online piracy sites, according to the report.

•82 percent of search queries that brought a user to a website offering pirated materials was through Google search. This number is in direct contrast with a report released by Google last week. Google claims that just 16 percent of internet users find online piracy sites through a search engine. 

Source:  Eriq Gardner, “Why Hollywood Is Suddenly Marveling Over Piracy Studies,” Hollywood Reporter, September 18, 2013.

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Dashboard View

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Dashboard View

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Fake Pharma

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Dashboard View

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Dashboard View

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ChildPornography

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Maksym ShynkarenkoName: Maksym Shynkarenko

Country: Ukraine

Category: OBS (Child Pornography)

Sites: Operated a network of at least 9 sites

Primary Activity: Pornography specifically Child Pornography

Ad Supported?: YesAssociated websiteciampics.comcpcity2007.comdirtynymphet.comhualama.comillegal.cppedoheaven.comrealchildporno.comthesickchildroom.comworldfamouschildpornvideo.com

Summary

Maksym Shynkarenko has been noted due to allegations of Intellectual Property Infringement. He is a Ukrainian citizen, born in 1979. He was charged with one count of conspiracy to transport and ship child pornography; 16 counts of transportation and shipment of child pornography; one count of conspiracy to advertise child pornography; 12 counts of advertising child pornography; and one count each of engaging in a child exploitation enterprise and money laundering. He founded and operated a Ukraine-based child pornography website Illegal.CP and operated a network of websites with names The Sick Child Room, Hottest Childporn Garden, and Pedo Heaven, from which he allegedly made hundreds of thousands of dollars effectively selling tickets to the exploitation of children. He was arrested in January 2009 pursuant to the indictment after HSI tracked him to Thailand where he had traveled for a vacation. On 11 June 2012, he also faced a fine of up to $250,000 on each of those counts and carried a statutory maximum penalty of 20 years in prison and a $500,000 fine for the money laundering conspiracy count.

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Payment Provider Analysis

• Major Payment Engines

List of Payment Engines

Paypal Okpay

Discover Sofort

Webmoney Western union

Maestro Card Gopay

Moneybookers Micro payment

JCB Card Mol

Diners Club International Alipay

Paymentwall Dotpay

Yandex money Google wallet

Cashu Liqpay

Visa Electron Wallet One

Paysafecard Easy Pay

Pagseguro Eplatba

Ukash Euro Card

Fana pay Moneygram

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Ad Networks Analysis

• Major Ad Networks:

Most Frequently occurring Ads

googleadservices.com cpxinteractive.com mgid.com

doubleclick.net friendlyduck.com adorika.com

adnxs.com luxup.ru bbelements.com

matomymedia.com / xtendmedia.com

ad4game.com zanox.com

pay-click.ru adsmarket.com adbrite.com

vizury.com groovinads.com adbroker.com

marketgid.ru tlvmedia.com adk2.com

infolinks.com marketgid.com bidvertiser.com

advmaker.net adserverpub.com cpmstar.com

adcash.com banner.kiev.ua exoclick.com

zedo.com directadvert.ru intextual.com

pubdirecte.com googlesyndication.com smowtion.com

clicksor.com propellerads.com

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Pirate Sites(Wild West)

v1.0(Self-

regulated)

v2.0Veri-Site

Certified™

Online Anti-Piracy Evolution

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Increasing Awareness

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July 2011 : Guidelines released for rogue website screening by ad networksAdam Szubin, Director of OFAC, specifically addressed the growing threat of TCOs, stating that OFAC has been quite active in announcing designations in this area. Also, William F. Wechsler, Deputy Assistant Secretary of Defense for Counternarcotics and Global Threats, recently stated that criminal networks have harnessed “new methods of doing business” that must be challenged. TCOs have become “adroit at harnessing information technology tools, seizing the opportunities presented by the accelerating velocity of information flows, the proliferation of online money transfer, and the general anonymity of virtual exchange to increase the scale and scope of their activities while spreading or reducing the risk of detection.”.

July 2011: OFAC specifies SDN and screening guidelinesOFAC adds new designees as IP infringers; OFAC reiterates that all offline KYC requirements are also mandatory online, despite increased difficulty.

July 2011: US President announces anti-Transnational Organized Crime initiativeMission of OFAC is expanded, to include IP infringement, cybercrime, etc. – thereby increasing both OFAC’s jurisdiction and scope.

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Veri-Site

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PROPRIETARY & CONFIDENTIAL

Not for Reproduction or Distribution This presentation has been provided to you on a confidential basis and shall be used by you solely to evaluate a commercial business relationship with Veri-Site LLC. “Veri-Site”. This presentation does not purport to contain all of the information that you may desire or require to make such a decision. Neither Veri-Site nor any of its directors, officers, partners, employees, representatives, affiliates or controlling persons make any representation or warranty, expressed or implied, as to, or assumes any liability with respect to, the accuracy or completeness of the information contained herein or otherwise supplied.

This presentation, as well as any other documents, materials or other information provided by Veri-Site shall be promptly destroyed or returned to Veri-Site upon written notification. This presentation and its contents and any other documents, materials or other information provided by Veri-Site shall be used solely for evaluation purposes of a commercial business relationship only and shall be treated confidentially and not disclosed to any other person or entity without specific prior written approval from Veri-Site.

The delivery of this presentation shall not create any implication that there has been no change in the affairs of Veri-Site since the date hereof, or that the information contained herein is correct as of any time subsequent to the date of this presentation.

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Contact Details

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Dan PeakChief Executive Officer

[email protected]+1.608.632.1868