Does LifeLock Charge Extra To Coerce Suspected Identity Thieves?

from the smooth-move dept

LifeLock, a company that sells some identity theft protection services that consumers could get for free, got some bad press last month. Not only did it come out that one of the company's founders had allegedly stolen personal information from customers of another business he owned, it was also disclosed that LifeLock's services failed to protect the company's CEO from identity theft. A man in the Dallas area used the CEO's social security number -- which is prominently displayed in LifeLock's marketing materials -- to obtain a $500 loan, and police were waiting to get some subpoenaed information when the CEO took things into his own hands. He showed up at the fraudster's house with a film crew, and apparently coerced a confession out of the guy, who police say is mentally disabled. The confession is legally worthless, and police and prosecutors say it's tainted the case, so they're not going to proceed with their investigation, and have no plans to arrest the suspect. So, it would appear, that not only do LifeLock's anti-identity theft measures not work, the company also manages to bungle the prosecution of identity thieves.

Filed Under: identity theft
Companies: lifelock


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  1. identicon
    Jeff Zander, 22 Apr 2008 @ 6:19pm

    Don't be fooled!

    What most people fail to realize is that credit related ID Theft gets all the news attention but is responsible for only 50% of the ID Theft occurrences. Medical ID Theft, Employment, Utility, Wireless, IRS and Social Security Fraud are all on the rise and are completely unprotected by LifeLock's product and guarantee. Even if you become a victim of creedit related ID Theft their guarantee and services only apply if they are a direct result from the faiilure or defect of their service...which is placing fraud alert on your credit report. So if you become a victim because the lender does not check your credit report,(like many credit card companies) or they do and ignore the fraud alert,(as occurs frequently) then there is no protection. Just ask the President of the company that has had his identity stolen and in essence would not have been protected due to this exact situation. They are all hype and really are a pariah of the industry. My company does sell a competing plan but my advise to all is to find a plan that covers all ID theft regardless of the type and takes over all the work if you do become a victim. This is known as a fully managed restoration plan and several companies offer this type of service. Sice there is no way to eliminate the risk of ID Theft having a plan that is broad in what it does protect if the event occurs is the way to go. Otherwise you are better of keeping your money and going without. Check out a recent article in Kiplinger's ("Do I really need ID Theft?")which reaffirms this opinion.

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