Identity Theft Protection

Posts Tagged ‘lifelock.com’

The billboard and newspaper ads showing the CEO of Lifelock Todd Davis proudly revealing his social security number to America as a show of trust in the service his company offers has been revealed as the great Lifelock Com scam.

As a piece of marketing it was pure genius and has worked better than Todd Davis could have dared to dream when the idea for the ad was first put to him. Based on that ad campaign over 1 million Americans now gladly pay Lifelock $10 a month to protect their own identity the way it protects Todd Davis’s but there’s one small problem………

The Great Lifelock Com Scam

A lawyer who represents several disgruntled Lifelock consumers has been doing a little digging and discovered at least 20 cases of drivers licenses being issued to people using Todd Davis’s social security number as well as some guy in Texas who was able to take out a $500 payday loan in his name thanks to the infamous SSN.

Attorney David Paris who first did the background check on Todd Davis said:

“The company [Lifelock] is lining its coffers with somewhere in the arena of $100 million a year by selling a level of identity theft protection that it simply cannot provide.”

So far 5 lawsuits have been filed in what is becoming known as “The great Lifelock com scam” among security experts and class action status is being sought in all cases.

It’s not just Lifelock customers and class action lawyers who aren’t happy with the Lifelock com advertising either, state agencies in both New York and Montana are investigating the Lifelock advertising campaign.

What About That Famous $1 Million Guarantee?

LifeLock is also being sued in Arizona over its $1 million service guarantee, which the plaintiffs say is misleading because it only covers you if there is a defect in LifeLock’s service.

This means that should a bank or payday loan company not check with a credit bereau or if they do but choose to ignore the fraud alert (this often happens as it slows down the process as was the case with Davis’s bogus payday loan) that Lifelock placed on your file, Lifelock are not responsible because it’s not their fault.

Ignoring the gaping hole in the guarantee for a minute it should be pretty obvious to most that while calling it the great Lifelock scam may be a little harsh, there are some serious problems with their service and the way they are promoting it.

Placing a fraud alert against your name and removing you from mail lists is NOT identity theft protection and by the way, both can be done for free with a phone call. A fraud alert will not protect you if someone is arrested and gives your name and SSN. It won’t help you if someone uses your SSN and good name to apply for a job and then robs their new boss. It won’t help you when someone uses your name to get medical services and it won’t help you if the loan company choose to ignore it!

Of course you may like the idea of having Lifelock take care of placing fraud alerts for you and feel the fee is worth it and that’s ok too. Just be aware when you are checking out their website that paying Lifelock $10 a month does not and cannot guarantee you get full identity theft protection.

UPDATE: The courts have ruled that the fraud alerts placed by Lifelock are illegal and are to be stopped. Lifelock In Trouble Again.