Scamnetic

AI-BASED SCAM DETECTION FOR EVERYONE

AGENDA

- MISSION & CHALLENGE

- OPPORTUNITY

- SOLUTION

- GO - TO - MARKET

- TEAM

- INVESTMENT

Mission & Challenge

THE MISSION

To identify and stop every scam before losses occur by empowering consumers and their trusted service providers

THE CHALLENGE

Federal Trade Commission data shows that consumers reported losing more than $8.8 billion to scams in 2022, an increase of more than 50 percent over the previous year.

SCAMMERS ARE WINNING

Consumers are under pressure to discern truth from scams

Inbound attacks from various channels makes it difficult for the consumer to be in control

Consumers have no tools to effectively assess the risk before fraud occurs

THE VICTIMS

Scams are a technology-enabled societal threat that significantly undermines the financial and psychological welfare of victims, and everyone is a target.

• It’s not just seniors: Gen Z Americans were three times more likely to get caught up in an online scam than boomers were (16 percent and 5 percent, respectively).

• Scammers go where the money is: reports to the FTC of ‘pig butchering’ – where losses range in the millions – came mostly from victims between the ages of 30 and 49.

• Retirements are decimated: the average financial loss for romance scams targeting the elderly was $56,422.

• Victims suffer mental anguish: Nearly half (47%) of victims blamed themselves for the crime and more than half (61%) said they were too trusting. A majority reported feeling angry, regretful, betrayed, helpless and embarrassed.

ENABLING TRUST

Scams impact not only the consumer, but their trust in service providers as well because:

• Dating and social media sites are breeding grounds for romance scams, among others

• Telecoms facilitate the phone call and text communications critical to scammers’ success

• Financial service providers unwittingly transfer funds from the victim to the scammer

SCAMNETIC technology enables a paradigm shift as it can easily be integrated into their platforms, allowing service providers to go from scam enablers to stewards of consumer safety.

Consumers will also purchase directly from Scamnetic, or through identity protection companies, antimalware providers, or credit reporting agencies, none of which have effective tools for addressing scams.

THE FINANCIALS

✓ With a comprehensive product, regulatory tailwinds, and an extremely strong sales network, growth is only limited by speed-to-market

✓ Revenue expected to reach $43mm in 2028

✓ Margins anticipated to approach 60% by 2027

HOW DOES IT WORK?

SCAMNETIC TAKES A HOLISTIC APPROACH:

1. AN AI-BASED APPLICATION THAT HELPS CONSUMERS DETECT SCAMS IN REAL-TIME – ALL DAY, EVERYDAY – REMOVING HUMAN ERROR FROM THE EQUATION

2. INFORMING SERVICE PROVIDERS VIA API ABOUT SCAM ATTEMPTS SO THAT THEY CAN STOP RISKY TRANSACTIONS AND REMOVE BAD ACTORS FROM THEIR BASE OF USERS

Go-To-Market

KEY VERTICALS

1. FINANCIAL SERVICES & PAYMENTS

2. IDENTITY THEFT, CREDIT REPORTING AGENCIES, & ANTIVIRUS

3. DATING SITES & SOCIAL MEDIA

4. TELECOM

5. DIRECT-TO-CONSUMER

6. EMPLOYEE BENEFITS

EARLY PARTNERS

Starting in November, the team began to prioritize securing partnerships to refine our GTM plan and to better establish market demand for investors.

• Teaming Agreement with Dark Circuit Labs on an FBI IDIQ to deploy the solution to every agent’s device

• Letter of Intent with My Secure Advantage to embed within their digital platform

• Referral agreement with Aura (formerly Identity Guard)

• Pending design partnership with Allstate (in redlines), as well as pending agreements with Battle Bank, Boost Mobile, Commerce Bank, Dish Network, Financial Center Credit Union, and Sigma Loyalty

THE FOUNDERS

Scamnetic’s founding team are experienced executives with successful track records as leaders in the identity theft prevention and cybersecurity sectors.

Al Pascual CEO

➢ Co-Founder of Breach Clarity (now TransUnion)

➢ Former SVP – Head of Fraud & Security at Javelin

John Evans COO

➢ Inventor of the Scam Challenger

➢ Partner and Former EVP of Sales at Sontiq (now TransUnion)

THE ADVISORS

Scamnetic is fortunate to be advised by recognized domain experts that will bolster awareness, inform product design, drive sales, and help the business achieve rapid growth.

Jay

➢ Banking and Payment Risk Maven

➢ Former Chief Risk Officer of Early Warning Systems (Zelle)

➢ Former SVP Fraud at Bank of America

➢ Victim Advocate

➢ President and CEO of the non-profit Identity Theft Resource Center

➢ 22 years working for San Diego DA

➢ Digital Design Guru

➢ Founder and Principal Object

North

➢ Former VP Design

Celerity

➢ Former Partner at 3PC Media

Matt O’Neill

➢ Law Enforcement Expert

➢ Partner at 5oh Consulting

➢ Former Deputy Special Agent in Charge of Cyber at US Secret Service

Rich Scott

➢ Biz Dev Strategist

➢ Former CRO of Xcitium

➢ Former CRO of Sontiq (now TransUnion)

Troy

➢ Security Leader

➢ CSO of Cloud Security Alliance

➢ Former CTO and Chief Standards Architect of PCI Security Standards Council

Donna Turner

Kissman

Leach

Eva CaseyVelasquez

KNOWLEDGE

OVER FEAR IN THE FIGHT TO STOP SCAMS

THANK YOU!