LifeLock agrees to pay $100 million for allegedly violating FTC order

Have you ever wondered what happens when a company is charged with violating a settlement order with the FTC? Well, ya got trouble. I mean trouble with a capital “T”. And for LifeLock, that trouble comes partly in the form of full refunds of up to $100 million for consumers affected by its alleged order violations.

Let me set the stage. In 2010, LifeLock agreed to settle charges with the FTC and 35 state attorneys general that it used false claims to promote its identity theft protection services. The settlement required Lifelock to:

  • stop making deceptive claims;
  • strengthen measures to safeguard the personal information it collects from customers; and
  • pay the FTC $11 million for consumer refunds.

It’s five years later and what do we have? Broken promises and injured consumers. According to the FTC, LifeLock violated the 2010 FTC settlement order by:

  • from at least October 2012 through March 2014, failing to establish and maintain a comprehensive information security program to protect its customers’ sensitive personal information, including credit card, Social Security, and bank account numbers;
  • during that period falsely advertising that it protected consumers’ sensitive data with the same high-level safeguards as financial institutions;
  • falsely advertising that it would send alerts “as soon as” it received any indication that a consumer may be a victim of identity theft from January 2012 through December 2014; and
  • failing to meet the 2010 order’s recordkeeping requirements.

If you’re concerned about protecting your personal information, you may consider paying for identity theft protection services. But before you pay any fees, evaluate the company and its track record. Type the name of the company or product into a search engine along with words like “review,” “complaint,” or “scam.” Be sure to read a few reviews — don’t rely on just one source. Or, you may decide to take matters into your own hands by reviewing your credit reports on a regular basis or placing a credit freeze on your report.

For more information about protecting your personal information, visit our Privacy & Identity page. If you want help recovering from identity theft, visit IdentityTheft.gov.

Comments

Thanks so much for sending us these notices and alerts it is a great public service especially to we senior citizens.

Lifelock is one of the crooked companies out there. I cancelled my subscription after a couple months. I was able to get a mortgage without any notifcations from lifelock... I knew they weren't doing anything!!!

I had LIFELOCK and my identity was stolen and they did nothing LIFELOCK I said that's why I'm paying u to protect me and help if something happens and they said we are sorry but there is nothing we can do so I cancelled them they robbed me every month and did nothing when my identity was stolen.so I CANCELLED THEM

Should I cancel Lifelock???

Looks like in the waning days of this illicit administration the Chicago shakedowns are coming one right after another. The dependent Obamanites just can't get enough of other people’s money.

Well, several things. 1. I'm from there and fully expect Chicago and Illinois to go the way of Detroit, Venezuela, and all other failed Socialist states. 2. You've got a valid point about Govt. shakedowns of business, although some of the business "leaders" are willing participants. 3. I wouldn't vote for either of the two major party skunks running in the 2016 Pres. election. 4. After receiving the settlement check for $20 regarding the Lifelock scam (excuse me, alleged scam), and getting a significantly delayed notice of a recent mortgage refinance application from Lifelock, I seriously questioned its effectiveness. 5. I logged on to Lifelock, deleted as much financial info as possible and looked for a way to cancel the account.

6. Found out you cannot cancel it online, you have to call. Then there's a computer voice runaround. Then it tries to transfer you to a live person, but I got a busy signal the first time. 7. The live person started giving me the third degree rather than simply cancelling my account. Then he put me on hold for a few minutes after I insisted that he cancel my account. Then he informed me that my account would be cancelled in 2 weeks, the day before it automatically renewed. I insisted on an email confirming that it was cancelled. He put me on hold again and told me my account would be cancelled today AND THE REMAINDER OF MY FEE FOR THE MONTH WOULD BE REFUNDED. So, you can see why he wanted to delay cancellation. 8. Bottom line: if it's this difficult to cancel a service on automatic payments, and they try to scam you during cancellation, then it's a scam. Wish I could get more of the $300 spent with them back. $20 doesn't begin to cover it.

Excellent.

If the above is true, why don't you shut them down until they secure my personal information???? All the fines in the world won't help if they continue to ignore it! You should hold them accountable!

FTC create the appearance of protecting the public. As a condition to do business with the People, businesses must uphold the Constitution but the regulators will not prosecute so businesses are not in fear of being incarcerated. Who has money to pay an attorney who is not interested in winning but negotiating a settlement because he/she knows the Courts are corrupt? FTC employees can't generate their own income and are dependent on handouts from the Government and so will not speak out against their superiors who they know are mismanaging tax payer dollars. Reduce participation in consumerism and they just might change their ways and treat us somewhat fairly.

How do I file to be part of this?

As of 12/23/15, there is a proposed settlement. It is not final.

Under the terms of the proposed settlement, LifeLock must deposit $100 million with a federal court in Arizona. Of that $100 million, $68 million may be refunded to people who are part of a proposed class action settlement against LifeLock.  The name of the class action is Napoleon Ebarle et al. v. LifeLock, Inc.

If the court approves the class action settlement, people will get refunds through procedures the court approves.

Also, state attorneys general might take action and request consumer refunds. You might want to contact your state Attorney General’s office and ask if it is active in this matter.

Wow, that article was very helpful and good advice and well written.

Excellent JOB. Congratulations! Jose S

Over the course of many years we paid Equifax to keep and Eye on our information for security. After years of dealing with their programs I suddenly started getting emails from them saying that my credit score had been raised. It had been and was the excellent rating. A few weeks after I recieved this update I received another email saying that my credit score had been lowered. Checked and it was now rated so low nobody would have given me credit. I tried to find out why they kept changing it and got no satisfaction. I ended up calling one of our Senators (Merkleys) where I spoke with an aide named Jamie. They did all they could to make Equifax stop harassing me and messing around with my credit score but in the end they did not have any law to back them up so it went unfixed. Last summer or spring my husband and I decided to redo our mortgage at a lower interest rate. My Identification had been used recently so I had, had to go through all the hoops to try to stop the people using it. It has been used since and several attempts by phone have been made to get me to give more financial information and more. When this all started happening I had gone to the FTC site where I wrote to Transunion. My understanding was that they would alert the other two reporting agencies who would then put a fraud alert on my account. Within days I recieved confirmation from Transunion and Experian that this had been done. Nothing from Equifax. I then called them, where I was stonewalled but managed to make it clear I wanted the alert put on my account. When the lender doing our refinance tried to run a credit check on me Eqifax denied them because they claimed I had put a freeze on my account. The final signing of papers was due to happen within a week so I dropped off the loan. When I called to ask who had put the freeze on I spoke with a woman who insisted that I tell her not just the standard identifier questions, but that I tell her what credit cards, loans I had, had in the past. It had been years since we were forced into bankruptcy by a bad business partner and I couldn't even begin to remember what I had, had. I also am disabled with a condition called Fibromyalgia one side effect of which is chronic fatigue and what are known as dog days. When I am stressed I always end up in this state and cannot even finish a sentence. Bottom line is that she didn't need that information, and had no legal right to demand it. End result when another attempt to get an new American Express card, I had to once again ask the reporting agencies to keep the alert on my account in place. I recieved confirmation from all but Equifax. The idea of having to deal with their customer service reps. again was such I was unwilling to contact them. At no time did I ever ask any of these agencies to freeze my account. I am getting a migraine as I sit here writing this. I cannot believe that no one has gone after Equifax and possibly the other two agencies to complain as I have about the practices of at least Equifax. When we were paying them all this money to "keep our identity safe" they were telling me and showing me what my credit score was and what it was with the other two reporting agencies. I learned when all of this first happened years ago that there is no way they can know what the other agencies have me rated at. There were many other false promises as to what was covered under their so called "Premium Security Program" which we had. I know this is long and I did try to fill out the forms when the credit freeze thing came up, that were sent to me by the CFPB, but again my health became so bad as a result of the stress of having to go through all of the documentation needed to have them go after Equifax, I made such a mess of the forms I finally just said enough. If someone would resend me those forms I will have another go at it. Everything that you say Liflock was falsely claiming was being done by Equifax years ago. Do we consumers have any rights at all? Thank you for your time. Christine M.

If you need information from the CFPB, please visit their site at consumerfinance.gov.

If you'd like to file a complaint with the FTC, please visit ftc.gov/complaint.

You may want to review the Fair Credit Reporting Act of 1999. President Clinton put the burden on these agencies. There may be something in the law to force compliance.

What's really scary for those who don't know what I discovered recently is EQUFAX is the agency the social security administration uses to validate all of our identity"S. I can't even set up an online a ss account because it equifax says I'm not who I claim to be according to equifax and that's just the beginning. It's the worst nightmare u can imagine. Equifax has 3 different Ssn they claim I'm using , mortgages I never had etc. Etc. And can't even open my info with ssa cause it doesn't match with what equifax"S security verification info for ssa says I am . I got attorneys jumping on this . I wanna crawl in a hole and hide from this nightmare cause the more I learn the worse it gets. So stay on top of the fiction equifax puts in print about all of us

Thank you for your diligent work FTC ... Bravo!

Is Capital1360 a spam ?

That's exactly why I dropped Lifelock last month. Never got any help at all from them even after reporting credit card theft. They let the card company handle everything. Should have saved my money.

Whats missing is some more info on what transpired leading up to the $100 million, and whether they incurred any Fines.

I'm very grateful for your diligence in this investigation. I was considering using LifeLock. Ah, the power of advertising...
Thank you, FTC!!

Excellent info - thanks!

Great information FTC

I know my identity has been misused..I had to go through so many different email accounts
I have someone hacking into my passwords
Pasco Lewis Izzo& step mother Stacey Izzo of 180 marjoram ave Cranston RI have cleared out my accounts that were set up for me as a child..MY Step Sister Ashley izzo will not stay out of my personal data...And some lady from Philadelphia is using my name her name is Anderson....And my website I set up too have money sent to the homeless coalition Regina Ramirez took that money...And I collected as a humanitarian..

If you think you've been a victim of identity theft here are some steps you can take to protect yourself.

Astonishing, embarrassing and very telling that a government agency chooses to write a press release that attempts to completely mock an American company that very likely did nothing wrong ... One of the FTC Commissioners even wrote a dissenting opinion to that very effect. The FTC is attempting to justify itself and to score points with an inflammatory, "kangaroo court" press release. So very sad.

Perhaps someone should go after Rudy Gulliani and Rush Limbaugh who endorsed this product to the high hilt along with other people.

ok? just what did the FTC do this company? is there consumer rebate or a settlement with the prosecution? cumbak?!

Once again, Our FTC continues to just slaps wrists of the most successful wrongdoers. To *deter* such practices, FTC should levy fines equivalent to revenue received from consumers between the first agreement and the current, plus add in dollar value of bonuses rec'd by management during this time frame.

I always thought Life Lock spent too much money on advertisement but I am glad FTC is on the job...Great job!

LifeLock failed to help me and misinformed me about the damage done as the result of identity theft. They minimized it and would not help me with all the problems resulting. Is some of this settlement going to help people like me?

As of 12/23/15, the settlement is proposed. It is not final.

Under the terms of the proposed settlement, LifeLock must deposit $100 million with a federal court in Arizona. Of that $100 million, $68 million may be refunded to people who are part of a proposed class action settlement against LifeLock.  The name of the class action is Napoleon Ebarle et al. v. LifeLock, Inc. 

If the court approves the class action settlement, people will get refunds through procedures the court approves.

Also, state attorneys general might take action and request consumer refunds.

I am glad FTC is vigilant, and have system to follow up. I knew this was coming. Thank you.

I knew it that nothing can be so perfect. LifeLock sound to be to good to be true. Anythings can be hackle able.
nothing is secure in this world. I was thinking to buy LifeLock to protect myself from identity theft. Now I will be evaluate the company and its track record.

Most of the times, too good to be true products or plans created by these smart individuals intends to cheat customers knowingly. Keep in mind, if a company makes tens of millions in profit, paying couples of million in fine is the part of their business strategy.

My Lifelock account was hacked. Tried to go online to check it. My user ID and password had been changed. Lifelock did nothing about. Happened more than once.

Any $ for the consumer????

As of 12/23/15, the settlement is proposed. It is not final.

Under the terms of the proposed settlement, LifeLock must deposit $100 million with a federal court in Arizona. Of that $100 million, $68 million may be refunded to people who are part of a proposed class action settlement against LifeLock.  The name of the class action is Napoleon Ebarle et al. v. LifeLock, Inc.

If the court approves the class action settlement, people will get refunds through procedures the court approves.

Also, state attorneys general might take action and request consumer refunds.

Thank you very much. ...

I felt safe with Lifelock until now. I pay around $300. Yr and it is about to come due... Now I don't know if I should continue with them.

I have the same concern. Are they actually not protecting me? Am I paying for nothing?

I'm afraid that you are paying for practically nothing. There is no real evidence that LifeLock reduces the risk of ID theft. Meanwhile, the company has been accused of deceptive practices for its entire history. Its services are expensive because LifeLock has to fund its massive marketing and legal expenses. There are 100+ companies selling ID protection and most of them are cheaper than LifeLock. Some of them are free. Most of LifeLock's services are actually provided by outside companies anyway.

is lifelock issuing member refunds?

As of 12/23/15, the settlement is proposed. It is not final.

Under the terms of the proposed settlement, LifeLock must deposit $100 million with a federal court in Arizona. Of that $100 million, $68 million may be refunded to people who are part of a proposed class action settlement against LifeLock.  The name of the class action is Napoleon Ebarle et al. v. LifeLock, Inc.

If the court approves the class action settlement, people will get refunds through procedures the court approves.

Also, state attorneys general might take action and request consumer refunds.

The bottom line is this that the consumers should do their homework first before paying money to the companies like LifeLock. I just wonder how effective the three credit bureaus are in protecting our information. What options do we have in case their database is hacked and all the sensitive information is stolen? Who will protect us then?

Looks like LifeLock is still up to deceptive practices, FTC. As an investor performing due diligence on the Investor Relations page of their website, they show they're accredited with the BBB. Cross referencing against the BBB's site, LifeLock is NOT an accredited business. Apparently they haven't learned their lesson. These people should not be in business.

I signed up for my life thinking it could help me monitor things. I quickly realized this was a scam, but when I tried to cancel they had already charge me 119.00 for my year subscription, but sent me a receipt for 1.00 at the trial price I believd I was getting. How can they monitor my credit when they didn't even know my new address.

They are still spamming people. Please make them stop.

Just got my check today!! 20 bucks but was a nice surprise in mail.

When I had them for a year back in 2014 they noticed me that my personal information had been detected on a black market website. I called up their customer service to find out specifically where it was found but they wouldn't tell me. I asked him why they were protecting the identit of the site since I was the one paying them. Shortly thereafter I cancelled my account because all they suggested to me was to change my password....thanks, never thought of doing that.

What if I opted out? can i still get some money back?

I also applied for HELOC and no notification. I called them to ask why wasn't this reported and they did not have a reason for this. Ripoff!

They suck. PERIOD!

I never received notice of the class action suit. I received a check in the mail for $19 dollars and change which led me to do a google search on the case. Just finding out now about all of this. I'm so disappointed to learn. I paid my Lifelock membership on an annual basis nearly $400 a year for each myself and my husband via my credit card. The renewal just occurred in August 2016. I now want to cancel and am wondering if I should call my credit card company (I have purchase protection) and report the situation to be refunded. I also will be calling Lifelock to cancel. Now that all my personal information was provided to Lifelock what is the best way to remove it?

Please ask Lifelock customer service about removing your name and personal information from their files and system.

Just received my check the other day for $19.48 . Just wondering if anyone else had trouble separating the check form the address info on the front. I'm unable to do it. Wondering if anyone else had this issue. Hoping it's not a SCAM check to get your bank info. Going to check with my bank 1st .

I just received checks in the mail for my kids because they must have been subclass members. I was never notified of this lawsuit. Is it too lat le for me to submit a claim? Why was I not notified?!

Never received any information about the suit either. Got a check for $19.48. Guess someone saved "Life-Suck" some money by not notifying all the members of the eligible "classes".

I called them to check on why they hadn't kept my debit card from being used FOUR TIMES in two weeks! I dialed the 800 customer service number and was redirected to a "YOU JUST WON A FREE CRUISE" line! I swear! I hung up and tried again...same thing! All I had to do was answer a few short survey questions about Lifelock! You have GOT to be kidding me???? So I complained. I complained to BBB! The only time ever that BBB didn't help me with a company! So I guess we know whose in their pockets! Needless to say I was done with Lifelock!

Leave a Comment

Comment Policy

Read Our Privacy Act Statement

It is your choice whether to submit a comment. If you do, you must create a user name, or we will not post your comment. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Comments and user names are part of the Federal Trade Commission’s (FTC) public records system, and user names also are part of the FTC’s computer user records system. We may routinely use these records as described in the FTC’s Privacy Act system notices. For more information on how the FTC handles information that we collect, please read our privacy policy.