FTC Charges LifeLock, Inc.
with False Identity Theft Protection
March 23, 2010
Colleagues,
The LifeLock company known for promoting the CEO's Social
Security
number on the side of a truck will pay $12 Million to Settle
Charges by
the FTC and 35 States that Identity Theft Prevention and Data
Security
Claims were false.
LifeLock, Inc. has agreed to pay $11 million to the Federal
Trade
Commission and $1 million to a group of 35 state attorneys
general to
settle charges that the company used false claims to promote its
identity theft protection services, which it widely advertised
by
displaying the in one of the largest FTC-state coordinated
settlements
on record, LifeLock and its principals will be barred from
making
deceptive claims and required to take more stringent measures to
safeguard the personal information they collect from customers.
In addition to its deceptive identity theft protection claims,
LifeLock
allegedly made claims about its own data security that were not
true.
According to the FTC, LifeLock routinely collected sensitive
information
from its customers, including their social security numbers and
credit
card numbers. The company claimed:
* "Only authorized employees of LifeLock will have access to the
data that you provide to us, and that access is granted only on
a 'need
to know' basis."
* "All stored personal data is electronically encrypted."
* "LifeLock uses highly secure physical, electronic, and
managerial
procedures to safeguard the confidentiality and security of the
data you
provide to us."
The FTC charged that LifeLock's data was not encrypted, and
sensitive
consumer information was not shared only on a "need to know"
basis. In
fact, the agency charged, the company's data system was
vulnerable and
could have been exploited by those seeking access to customer
information.
This charge only proves that the FTC is actively pursuing the
protection
of private personal information as well as insuring that
deceptive
business practices will not be tolerated when it comes to the
risk of
identity theft.
More detailed information can be found at
http://ftc.gov/opa/2010/03/lifelock.shtm
Keeping the profession informed,
Jimmie Mesis
NCISS Legislative Chairman
Email:
jim@nciss.org
NCISS
7501 Sparrows Point Blvd.
Baltimore, Maryland 21219-1927
(800) 445-8408 . Fax: (410) 388-9746
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