Saturday, November 20, 2010

Nearly One Million Consumers Getting Refunds From LifeLock

Nearly One Million Consumers Getting Refunds From LifeLock: "

LifeLock, an identity theft security firm, has begun mailing checks to customers nationwide, part of a settlement with the Federal Trade Commission (FTC) and 34 states.

The settlement was reached in March of this year, following an investigation into the company's allegedly misleading advertising practices.

LifeLock sells identity theft services that past advertisements allegedly claimed were "guaranteed" to protect consumers' personal information and prevent criminals from using it to open accounts in consumers' names. Some ads even included LifeLock CEO Todd Davis' social security number in an effort to demonstrate Davis' confidence in the services offered.

The FTC and various state attorneys general charged that the fraud alerts that LifeLock placed on customers' credit files protected only against certain forms of identity theft and gave them no protection against the misuse of existing accounts, the most common type of identity theft. It also allegedly provided no protection against medical identity theft or employment identity theft, in which thieves use personal information to get medical care or apply for jobs.


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