RSSCEO of ID theft protection service under fire after his SSN is misused
By Michael Hatamoto | Published May 23, 2008, 5:58 PM
The man behind an online fraud and identity theft prevention service is being sued in multiple states over his stance that customers' identities will not be stolen.
LifeLock was designed and marketed for several years as the one-stop shop to identity protection, with the company alerting you if someone tried to apply for a credit card or similar action using your personal information. Although most citizens are willing to try to monitor their own activities using various credit bureaus, LifeLock provides the service for $10 per month, and will pay up to $1 million to each member if his identity is stolen. The service does not protect against fraudsters using stolen SSNs on job applications or for medical benefits.
Several LifeLock clients have filed class action lawsuits against CEO Todd Davis and LifeLock in New Jersey, West Virginia, and Maryland, claiming false advertising.
Davis has boldly posted his own Social Security number on the front page of his Web site, citing his absolute "confidence LifeLock is protecting my good name and personal information, just like it will yours." Number 457-55-5462, his site now claims, is "the most famous Social Security number in the world."
But Davis admitted his identity has been stolen at least one time successfully, by a fellow taking out a $500 loan using that famous number; and that there have been 87 additional attempts by identity thieves. A statement on the LifeLock Web site sets the number of individuals having reported their identities stolen at 105, adding, "LifeLock's $1 Million Total Service Guarantee completely covered every one of them."
A separate lawsuit in Arizona focuses solely on that service guarantee, with plaintiffs stating it only covers errors by LifeLock, and doesn't guarantee money will be paid out. Furthermore, a lawsuit has been filed against LifeLock in California by credit reporting agency Experian, with the company accusing LifeLock of deception and trickery.
Davis has received strong criticism for his advertising methods over the years, with TV ad clips, newspaper and billboard images, even with him walking down the street and promoting his company using a bullhorn.
As cranbers mentioned, you can get the same level of satefy by doing yourself what LifeLock does for its customers:
http://www.mymoneyblog.c...-yourself-for-free.html
It seems that is the "meat" of the protection by all ID theft services - the fraud alert.
http://www.fightidentitytheft.com/flag.html
But I don't recommend getting the stronger protection "credit report freeze" because it may cost you more than $100 a year to keep releasing it temporary for every new card/creditline increase/etc. You pay $10 per release (allowing a creditor to view your file) in most states.
http://www.consumersunio...n_more/003484indiv.html
Now I wonder what's the technical definition of identity theft. What is the minimum requirement in order to get the free "freeze" for ID theft victims. Hopefully just catching someone using your credit card once is enough...
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|I bet these guys have made a rediculous amount of money, and all they had to do was do for you what you can do for yourself, for free! This market is ripe for the picking and well, they are doing exactly that.
Identity theft is a booming crime right now and lots of people are pretty worried and scared.
They do have one heck of a good marketing department, who hasn't heard of life lock? It's everywhere.
Identity theft can completely destroy a person's life. Especially for those working in the government who rely on good credit and record for their job.
Why hasn't there been some sort of a reform to add some sort of protection to our number meant for social security and not a number to keep track of us that others can steal so easily?
Proving you are the real person and not the identity thief is where it gets fun. Imagine having to convince someone you are you? I would compare someone buying something under your name or giving them your name while being arrested the worst possible crime. Equivelent to rape or bashing someone's face in till they are deformed.
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|Wow.
Paint him as a badguy?
Yeah, like every ID thief and company based around ID fraud hasn't tried this line.
Good to see BN jumping on the bandwagon as well...
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|There are a lot of people that wish to do away with the likes of Lifelock, and they have a lot of resources.
Many, many a rotten person wonders what will happen if Experian ever loses market share to people who actually want to protect your identity.
They needn't worry. Experian has enough resources to keep the good guys at bay.
For an interesting [short] read on the battle thus far, you should check out http://www.techcrunch.co...the-hit-job-on-lifelock/
So someone's suing for a million cause some sleepy clerk handed over $500 where she shouldn't of. Even though Lifelock no doubt made good on their promise to Davis, and the guy suing hasn't lost a penny....
Check out the Techcrunch article
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|We did this years ago, every time I apply for credit anywhere, I have to go hame and call them to verify it's me.
A pain in the a** but worth it.
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|Gee, I have no trouble cashing checks and establishing credit with my phone number...BR-549
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|I was just waiting for this to happen. Build a trap and wait long enough, some moron will walk through it. The same concept applies here.
I wonder how many people still try to dial 867-5309 when they first hear the song.
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|Hey!
Where'd you get Jenny's number? She's my girlfriend, ya know...
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|Services like this are only as good as the person running the credit check on the potential fraudster.
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