Will Lifelock's CEO Get To Be A Part Of The Class Action Lawsuit Against Lifelock?

from the he-could-qualify dept

You may recall the story of Lifelock, the company that heavily advertises its service which charges you $10/month to get services that you can get on your own for free from credit agencies. This is the one where the CEO gives out his Social Security number in every advertisement to show how confident he is in the service. Of course, what he leaves out is that Lifelock failed to stop identity fraud carried out against him (oops). Oh yeah, also the stuff about how the company's founder was being investigated for fraud (and potential identity fraud) at a previous company.

So, it should come as little surprise that some customers of Lifelock aren't particularly pleased with the company and have filed a class action lawsuit against the company, claiming deceptive advertising, and noting that it doesn't really provide much security. One additional nugget of information: the identity fraud against the CEO that we mentioned earlier is just the tip of the iceberg. The CEO's social security number is apparently now widely in use among identity scammers. Well, maybe he'll get some money out of the class action lawsuit, since it appears that he was misled by his own advertising...


Reader Comments (rss)

(Flattened / Threaded)

  •  
    identicon
    Hoeppner, May 2nd, 2008 @ 7:17am

    classic.

     

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    identicon
    James, May 2nd, 2008 @ 7:33am

    Karma is a bitch

     

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  •  
    identicon
    Richard Sweats, May 2nd, 2008 @ 7:39am

    LifeLock Lawsuit

    WOW

    My company is working with this guy to align him with online banking services! Well I guess that marriage won't be consummated anytime soon!

     

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  •  
    identicon
    Anonymous Coward, May 2nd, 2008 @ 7:41am

    ha ha ha ha ha ha ha
    Ha Ha Ha Ha Ha Ha Ha
    HA HA HA HA HA HA HA

    I'm rolling!!!!!!!

     

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    identicon
    Mike, May 2nd, 2008 @ 7:48am

    ^ AH hA

    Ok now this is pretty funny. I wonder how many credit cards this guy now has in his name rofl.

    Tards!

     

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    identicon
    Anonymous Coward, May 2nd, 2008 @ 7:50am

    Funny thing is....

    ....the SS# is still post on their website. And they are still allow people to subscribe to potential fraud.

    Too funny.

    I was thinking about it but decided to wait a while and see how it went. Where there is a will there is a way.

     

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    identicon
    Ryan, May 2nd, 2008 @ 8:15am

    The free services

    This is exactly why we launched freeIDENTITYprotect - to allow customers to easily access the free identity and credit services offered by the bureaus - for free.

    freeIDENTITYprotect.com walks you through filling out the services and remembers when it's time for you to order another credit report or re-set your fraud alerts - without charging.

     

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    identicon
    bored, May 2nd, 2008 @ 8:26am

    LMAO...............AssHat!

     

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    identicon
    anne, May 2nd, 2008 @ 9:19am

    Free service to California residents

    By the way, if you live in the state of California, you can request a 'credit freeze' from all three credit bureaus. Flat rate of $10 each and I think the freeze lasts 5 years.

    It's a minor PITA, as you have to pay a fee to unlock a credit bureau report whenever you want to apply for credit or a credit line increase. The identity thieves have a harder time trying to steal your identity if they can't see your credit report, and it's also good for people who have legitimate (or illegitimate) worries about privacy.

    Exception - current and recent companies who you have credit with can access your reports, so it's not a free ride for the deadbeat.

     

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    identicon
    barren waste, May 2nd, 2008 @ 9:21am

    Poetic Justice

    What more can I say. The scam man being scammed by his own company, which is then sued by all those scammed, including the front man. I love it. I wonder when the movie is coming out and who the hero will be?

     

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    identicon
    Bad Info, May 2nd, 2008 @ 9:26am

    Wrong Info

    There's so much bad info in this post it isn't funny, and I know as a member of LifeLock.

    One, Lifelock's service go beyond things you can do yourself. They have bot programs that scour the internet for my information being sold on the black market (I don't know how to operate or create a bot program), they check for change of address forms filed in my name (I don't have the time to go through the 45 million change of address forms filed each year), and other services.

    And yes, I can also change my oil, do my dry cleaning, wash my car myself, but I pay others to do it for convenience, just as I pay LifeLock.

    The company's "founder" has been excused long, long ago.

    The CEO's identity has been stolen once according to media reports, on a quick payday loan for $500 and there have been tens of thousands of attempts.

     

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    identicon
    That Guy, May 2nd, 2008 @ 9:37am

    Whoop! Whoop! lifelock PR Spin in full effect!

    Captain, I see the BS-o-meter is rising. It appears that a Life lock employee is on damage control.

    Set phasers to Crispy!

     

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    identicon
    lmr2020, May 2nd, 2008 @ 9:37am

    It was only a matter of time....

    before this scam was exposed. Very interesting...

     

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    identicon
    Isn't That the Point?, May 2nd, 2008 @ 9:41am

    So the guy gives out his social security number on millions of advertisements a year, one guy steals it, and its cleaned up with no hassle and he continues to give it out.

    Isn't that the whole point of the service? If your identity is stolen, they clean it up for you, which they did obviously at no adverse affect to the CEO.

    I'm sure thousands of people try to steal his number each day as it is posted everywhere and on TV and radio. To me, it shows the service does work. They found it and resolved it, and I know, or hope, my SS# would be never nearly exposed as his is.

     

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      identicon
      Chronno S. Trigger, May 2nd, 2008 @ 10:03am

      Re:

      according to the linked to article, he presently has 20 or so people using his identity, as in right now.

      Funny thing is, my dad was talking to me about this a little while ago. He was wondering how they could possibly do anything like they say (he works a lot with credit checks). I guess they really can't.

       

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    nipseyrussell, May 2nd, 2008 @ 9:46am

    you can do your own dry cleaning? bravo

     

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    identicon
    Ryan, May 2nd, 2008 @ 10:20am

    not lifelock

    sorry, when I said "we" in the "freeidentityprotect" post, we're NOT lifelock. Just wanted to clear that up.

     

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    identicon
    Sajon, May 2nd, 2008 @ 10:31am

    Good job on information security

    Without putting things in perspective it is easy to laugh at this scenario...however.

    If 1/100 of 1% of the population attempted to assume Todd Davis' identity or gain access to his funds this would equate to around 28,000 people doing what they could to gain access to his funds. Very secure if you ask me as those willing to give it a go know what they are doing.

    How many network security gurus could guarantee nobody would get into there network after providing the nation with a network IP address. I work in network security and I am very happy I do not have 28,000 people dedicated to breaking into my network even absent my broadcasting critical information on national television.

    I am not sure about the other aspects of the company and the legitimacy of suits filed against them but from an information security perspective a single successful attempt on a security number which was broadcast is an exceptional accomplishment.

    (No affiliation with LifeLock of course)

     

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    identicon
    Robert Jones, May 2nd, 2008 @ 10:54am

    Ok, check this out...Go to Google and search on "lifelock class action" (without quotes). Notice that the first result is the LifeLock enrollment form. Seems strange. After clicking the link, do a search on the page for "class action". You will see that DEEP in the fine print it says:

    "...you also agree that you will not participate in any way in any class action in connection with any such dispute, controversy or claim, either as a class representative plaintiff or as a member of a putative class."

    So, you are now waiving your rights to join any class action suit if you sign up.

    Too funny!

     

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    •  
      identicon
      L.T., Jun 7th, 2008 @ 2:12pm

      Re:

      Clauses like that can be overturned or ignored in a court setting sometimes, depending upon the situation, so eh... a company's attempt to excuse themselves from responsibility in such ways - which most companies do, if you read their contracts - is really only so effective. Basically it prevents people who look at it and go 'Oh, I guess that's it, then' from doing anything about it.

       

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    identicon
    Sajon, May 2nd, 2008 @ 11:06am

    Plagurism/Facts

    I found the "I can change my own oil" comment was originally uttered by Todd Davis himself in an article by greg wilson of Daily News titled: LifeLock CEO Todd Davis has his own name, ID on the line.

    "Davis acknowledged consumers could take the same steps themselves, but points out that people can change their own oil, too. At $10 a month, LifeLock figures customers will prefer to let it handle the paperwork."

    So it appears it is valid to say all things accomplished by Lifelock could be done by individuals if they prefer not to shell out $10.00 a month.

    Additionally there seems to be some skewing of the numbers by Lifelock. Lifelock advertises the rate of identity theft at 1 in 5 or 20%.

    According to Javelin Strategy & Research Survey - February 2007
    Survey findings Include:
    8.4 million cases or 3% of population in 2007.
    Total one year fraud amount: $49.3 billion in 2007.
    The mean fraud amount: $5,720 in 2007.
    The mean resolution time was 25 hours per victim.

    If I were a lottery playing man I like those odds, but a garunteed loss of $10.00 per month based on a 3% (and declining)chance of someone successfully getting an average of $5,720 of my dollars(which I can get back after some work) I just can not justify the expense.

     

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    •  
      identicon
      Mikey Boy, May 2nd, 2008 @ 11:41am

      Re: Plagurism/Facts

      Your analysis is fundamentally flawed. If you are in the statistics business get out, if you’re not, don’t choose it as a career.

       

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        identicon
        Mikey Boy, May 2nd, 2008 @ 11:45am

        Re: Re: Plagurism/Facts

        BTW....my wife’s identity was stolen before we were married and.....let me tell you....its a HELL you never want to go through. If I had to put a dollar amount on it, it would be WELL over your flawed figure of $5,270. If I could have paid that to make it all go away I would have gladly done so. The actual cost and the cost of aggravation was probably tens of thousands. I speak from actual experience.

         

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          identicon
          Katie, May 2nd, 2008 @ 12:31pm

          Re: Re: Re: Plagurism/Facts

          How many years ago was this? Identity theft is easily solved today, and as the (correct) analysis you're replying to points out, the rate is on decline. It has been for some time, in fact. The claim that ID theft is "on the rise" is based on data gathered up to 2001 when the slope went negative.

           

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            identicon
            Mikey Boy, May 3rd, 2008 @ 11:05am

            Re: Re: Re: Re: Plagurism/Facts

            your joking me right? easily solved? are you talking from experience or out of you arse?

            I'm not even going to respond further you are obviously an idiot.

             

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    identicon
    Mikey Boy, May 2nd, 2008 @ 11:38am

    its very simple

    I am a lifelock customer too.

    If anyone is too stupid to pay atention to what you get from them then its their problem. I'm tired of idiots always blaming someone else becasue they are too lazy or stupid to read up and educate themselves, read the FAQ's and fine print.

    First, I agree...I think him giving out his SSN was stupid. Why invite a problem? Biut it was an effective marketing tool, but I still wouldn't have used it.

    Second, like a previous poster mentioned. YES you can do a LOT of what they do for free, and they tell you that in their FAQ (if you read it). So you know what? Go and do it! I'd rather continue to bill out at $120 per hour and let someone else do all that work for $10 a month. Its a judgement call and they provide a service. I could probably paint my house too, but I'd rather not. I'll pay a professional.

     

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    identicon
    LifeLock Employee or Debix Employee?, May 2nd, 2008 @ 12:08pm

    This is comical.

    Why is everyone who agrees with a businesses on a forum/message board always an employee of said company? It would probably take a PR staff of thousands to do such a thing. Is everyone who posts bad things about a company one of their competitors? No, for the same reason.

    Anyways, I pay for the service for convenience. I haven't had my ID stolen. Maybe I'm paranoid, but I do know people who have had their IDs stolen and while they got the $$ back, they spent literally dozens of hours and much hassle trying to do it. I really don't care what past founders or whatever did. I know I can do some, not all as a previous poster mentioned, of LifeLock's stuff for myself, but I don't want to take the time, plain and simple.

    I hope we get updates on these lawsuits to see what the courts and law has to say. I'm sure if they are dismissed or thrown out, we wont' hear a peep of it because lawyers PR teams won't publish that.

     

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  •  
    identicon
    LockdownMyID.com, May 7th, 2008 @ 8:21pm

    LifeLock vs LockDown

    LockDownMyID.com doesn't ask you for power of attorney.

    LifeLock Does!

    LockDownMyID.com is web based and an affiliate driven business that shares 50% of the monthly subscription.

    LifeLock ISN'T and DOESN'T!

    LockDownMyID.com has Fraud Alert call forwarding

    LifeLock DOESN'T!

    LockDownMyID offers members REAL identity theft insurance

    LifeLock has a guarantee!

    LOCKDOWNMYID.COM

     

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  •  
    identicon
    Samiullah, Jun 20th, 2008 @ 11:02pm

    I review this site and getting good idea and view that written here, life lock is good industry taking good steps keep monitoring identity thieves and it always protect from wrong hands’ and taken full service . No one stop identity theft, but we almost completely cover it and its life lock guarantee. So we suggest visit this site hope you getting more knowledge. http://www.identitytheftprotectionlock.com/

     

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    identicon
    SEO Company, Oct 27th, 2009 @ 1:27pm

    huh, this is pretty disturbing, i dont even know if i should laugh or cry ... SEO Company

     

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      identicon
      OnTheLookout, Nov 18th, 2009 @ 9:53am

      Re: SEO Company

      No one benefits from laughing. Crying for this company seems more appropriate. Crying for those expecting ANY company can stop identity is more appropriate.

      Consumers need to spend more time educating themselves on the problem of idenity theft and not just rely on product/service marketing soundbits to get their information on the problem which according to industry security experts, have reached pandemic levels.

      LifeLock should take a serious look at what they say they can provide... and consumers should read about the service products BEFORE they elect to become subscribers. If consumers do this, then they make an informed buying decision. At that point, they have no one to blame if they pay for something that gives them little value.

      It's takes less than 5 minutes to place fraud alerts BUT, before you do so, you have to believe you're a victim of idenity theft. What's so time consumming about that? It takes longer to sign-up for the LifeLock service!

      After 90 days, you have to provide documented proof to continue the fraud alerts. This is one of the reasons the LifeLock flawed program got them into trouble. They automated their system to place fraud alerts without the validation of being a victim which is required by law to continue the fraud alerts.

      Even their new product/service claims only report use of your info on the internet which means this is AFTER the theft has occured. After the fact does little and cannot be considered "proactive" which is what they say in their advertising. I imagine the lawyers in the class action lawsuits will point out that this falls into the category of "deceptive advertising" which is part of the complaint against LifeLock.

      These are all consumer teaching moments.

       

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  •  
    identicon
    jakarta hotel, Mar 6th, 2012 @ 12:41am

    LifeLock is well know for posting CEO Todd Davis' social security number on the sides of trucks, the Internet and other advertisements. This public display has resulted in at least one successful identity theft attempt against Mr. Davis.

     

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  •  
    identicon
    Rodney Hems, Nov 21st, 2013 @ 2:11am

    karma

    Maybe there's a karma after all. :D

     

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