SC Magazine reports:
LifeLock will pay $11 million to the Federal Trade Commission (FTC) and $1 million to a group of 35 state attorneys general to settle charges that the Tempe, Ariz.-based company made false claims about its identity theft products.
The FTC contended that LifeLock's claims were "deceptive" because the fraud alerts it places on customers' credit files can only protect against certain types of identity theft, such as new account fraud, which occurs when an ID thief opens up new financial accounts by using the victim's name and Social Security number.
In addition, ironically:
LifeLock, which bills itself as "#1 in identity theft protection," has gained national notoriety with commercials that show Davis' Social Security number on the side of a truck, while Davis tells the audience that he is confident his company's services will protect him – and potential customers – from having their identity stolen. But Davis reportedly has been a victim of ID theft.
As I have said before, Identity Theft is a real problem. To protect yourself, start by reviewing the offerings of the three credit agencies Equifax, Experian, and TransUnion.
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