LifeLock will pay $12 million for false claims

LifeLock, Inc., the company that GUARANTEED it would prevent customers’ identities from being stolen (for $10 per month) has agreed to pay fines totaling $12 million because the claims it made to promote its protection services were false, according to the U.S. Federal Trade Commission.The company will pay $11 million to the FTC and $1 million to the attorneys general of 35 states. It is one of the largest FTC-state coordinated settlements, the commission said. The FTC will use the $11 million from the settlement and make refunds to consumers.The FTC said in its release:“The FTC’s complaint charged that the fraud alerts that LifeLock placed on customers’ credit files protected only against certain forms of identity theft and gave them no protection against the misuse of existing accounts, the most common type of identity theft. It also allegedly provided 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 most effective, they do not provide absolute protection. They alert creditors opening new accounts to take reasonable measures to verify that the individual applying for credit actually is who he or she claims to be, but in some instances, identity thieves can (continue reading...)