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
    Mark M., 22 Dec 2007 @ 1:36pm

    Re: My lifelock Expierance

    J. Meadows backs up exactly what I expected when I was thinking about signing up. In fact, I sent two emails to Jeff Critchley, Director of Client Relations for Lifelock, regarding Lifelock's $1 Million Guarantee. The first email was sent 11/11/07. I have not received a reply to date.

    Basically what I submitted to Jeff Critchley for clarification was as follows:

    Lifelock makes the following statement on the "How Lifelock Works" section of their website,

    "If your Identity is stolen while you are our client, we're going to do whatever it takes to recover your good name. If you need lawyers, we're going to hire the best we can find. If you need investigators, accountants, case managers, whatever, they're yours. If you lose money as a result of the theft, we're going to give it back to you.

    We will do whatever it takes to help you recover your good name and we will spend up to $1,000,000 to do it."

    Wow, I thought--they will "do whatever it takes to recover my good name". After reading this statement, I sure didn't expect that the most likely reason I would have credit fraudulently taken out in my name while a client of Lifelock, would not, in my opinion, be covered by Lifelock. Notice I said, "in my opinion". I say that because Lifelock has not responded with a clarification yet--and I suspect they haven't responded because I AM RIGHT! Follow my arguments below and you be the judge.

    After reading their statement I included above, I then read their actual $1 Million Service Guarantee. In the guarantee, the first thing I noticed is that they nullified their entire statement that I included above by stating in their service guarantee,

    "Other than our service guarantee, we make no representation or warranty about our service of any kind, and we disclaim any implied warranties outside of our service guarantee,..."

    Hmmmmm, "we disclaim any implied warranties outside of our service guarantee". Well there goes out the window their "implied warranty" that they will "do whatever it takes to recover my good name" as stated on their website.

    So, since I can only rely on statements within their service guarantee, I dug further into their service guarantee to look for any limitations that they probably wouldn't want me to find.

    Oh, hmmm, well lookie here--check out this statement in their service guarantee,

    "If you are our client when someone accesses your personal identifying information and subsequently uses it without your authorization to commit a fraud, due to a failure or defect in our Service,..."

    Isn't that little qualifier interesting--"due to a failure or defect in our Service".

    So let me put a perspective on that qualifier. What is the most likely reason that someone would have an account opened fraudulently in their name while a customer of Lifelock? The answer: Because the creditor who was supposed to call you to let you know that someone was trying to open an account in your name failed to call you and opened the account anyway. So would Lifelock pay money up to $1 Million to help straighten out that mess? In my opinion they would say that they are not responsible for the acts of creditors and the fact that the creditor failed to do his job is not considered a "defect or failure in our service". J. Meadows, who wrote of his experience with Lifelock above, has added evidence that Lifelock would respond to a creditor's failure to make the phone call just as I suspected, "It's not our responsibility to call you!".

    So, is Lifelock's $1 Million Guarantee worth anything? In my opinion, NO!! To you, I highly suggest BUYER BEWARE!

    I challenge Lifelock to relinquish their silence and respond to my allegations that they make implied warranties within statements on their website and then nullify the implied warranties in their service guarantee. Lifelock should make a concrete statement within their service guarantee that states whether they DO or DO NOT spend their guarantee money on clients who have had an account fraudulently opened due to the failure of a creditor to call the client. That way, potential clients could see the guarantee for what it actually is!

    Here is my disclaimer in case you are wondering: I do not work for or have any financial interest in any of Lifelock's competitors. I have no personal grudges with anyone at Lifelock. I simply am a person who was intrigued by Lifelock, thought it was too good to be true, and suspect that I was right.

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