Earlier this month, LifeLock® agreed to pay $11 million in restitution to customers for misleading advertising. They will also pay $1 million in legal costs to 35 states involved in the suit.
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.
At the heart of the class action suit was LifeLock's claim that it protects against all types of identity theft and constantly monitors access to each of its customers consumer reports.
Virginia Attorney General Ken Cuccinelli stated,
Identity theft continues to be one of the fastest growing crimes in the United States. Although we welcome any business that offers services to help consumers prevent becoming victims of this crime, we have concerns when any business does not provide its potential customers with accurate information about its product. In our free market economy, requiring all businesses to provide truthful and accurate information is necessary for a level-playing field among competitors.
Virginia was one of 35 states which, along with the Federal Trade Commission, joined in the suit against LifeLock.
So what can you do to protect your identity?
- Place a free fraud alert on your credit report with the three major credit reporting agencies. (TransUnion, Experian and Equifax).
- Check your credit report regularly. (Each of the credit reporting agencies are required to provide you with one free report per year, so that's three free reports. Space your requests evenly, and you can do a pretty thorough job of self-monitoring).
- Keep a close eye on bank and credit card statements
- Check in regularly with Jake Stroup's Identity Theft site.
- Never post your social security number on the side of a truck.