LifeLock Customers to Receive Refunds | Privacy Rights Clearinghouse
The FTC has announced that customers of LifeLock’s identity theft protection services will be receiving refunds as part of a settlement with the company. Since 2006, LifeLock has advertised that it could prevent identity theft for consumers willing to sign up for its $10-a-month service.
However, the fraud alerts that LifeLock placed on its customers’ credit files protected only against certain forms of identity theft. Fraud alerts do not protect against the misuse of existing accounts, the most common type of identity theft.
Fraud alerts also provide no protection against medical identity theft or employment identity theft, in which thieves use personal information to get medical care or apply for jobs. And even for types of identity theft for which fraud alerts are effective, they do not provide absolute protection. Privacy Rights Clearinghouse alerted consumers to the limitations of identity theft monitoring services such as LifeLock almost 2 years ago in our Fact Sheet 33: Identity Theft Monitoring Services. Yesterday’s Federal Trade Commission $FTC$ announcement about LifeLock confirms that consumers should use caution and common sense before paying for identity theft monitoring services.