Does LifeLock owe you money?
In March 2010 I posted an article on LifeLock’s settlement with the Federal Trade Commission. The article generated so much interest that I’m discussing it again.
LifeLock, Inc. has agreed to pay $11 million to the Federal Trade Commission and $1 million to a group of 35 state attorneys general to settle charges that the company used false claims to promote its identity theft protection services, which it widely advertised by displaying the CEO’sSocial Security number. The FTC and 35 states have charged LifeLock with deceptive advertising. According to the lawsuit, LifeLock claimed its service would protect consumers against all forms of identity theft, when, in fact, LifeLock offered only limited protection against only some forms of ID theft.
LifeLock’s protection “left enough holes that you could drive a truck through it,” declared the FCC.
Those of you who have subscribed to LifeLock in the past could receive refunds. The Federal Trade Commission said it will contact eligible customers. Consumers who have any questions may call 1-888-288-0783 or go to: www.ftc.gov/redress.
Attorney General Lisa Madigan of Illinois declared: “This agreement prevents LifeLock from misrepresenting that its services offer absolute prevention against identity theft, because there is unfortunately no foolproof way to avoid ID theft.”
I agree. Crooks get hold of someone’s Social Security number, open a bank account and clean it out. In the ’60s and ‘70s there was an upsurge in the use of credit cards, and the problem got worse.
Along came the Internet and identity theft seemed available to anyone with a keyboard.
Until the banks wised-up and tightened up their security. The FTC claims that only 17 percent of cases in 2007 were new accounts. That’s when criminals shifted to other opportunities, mostly misuse of existing accounts.
The FTC said LifeLock offered no protection against that.
LifeLock swears that the FTC charges deal with old practices and products; they have changed since then.
If you feel that LifeLock owes you money, check it out and be patient, government agencies move very slowly.
May Your Glass Always Be Half Full
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