LifeLock, which was founded in 2005, is a personal fraud protection company.^[1] For a fee, the LifeLock Identity Alert system can identify fraudulent applications for many forms of both credit and non-credit related services. These include many but not all retail credit cards, mortgage loans, and auto loans, as well as non-credit related transactions such as wireless services, utilities, check orders and reorders, and non-credit related payday loans. ^[2][3] LifeLock will also contact opt-out mass-mailing organizations on your behalf in order to reduce unwanted mail which can potentially expose your information in the first place.

[edit] Corporate profile

LifeLock was founded in 2005 and provides protection against identity theft.^[4] In December 2008 LifeLock entered into an agreement with TransUnion, one of the three main credit bureaus, to automate the process of alerting customers of potential unauthorized access via their credit reports. ^[5]

On May 19 2009, the service provided by LifeLock was ruled to be illegal by a federal court. The original complaint brought about by Experian, was ruled to be breaching California law by placing fraud alerts on its customer’s credit profiles. The process was said to be costing the credit union millions of dollars a year by “surreptitiously placed hundreds of thousands” of alerts on Experian files “by posing as the consumer,” even when there was no suspicion of identity theft. U. S. District Judge Andrew Guilford granted the motion to stop the product, finding that federal lawmakers, in writing FACTA, did not intend for consumers to be able to contract with a business to place fraud alerts. The ruling also implicates and voids similar services offered by competitors, such as Debix. Beginning in September 2009 LifeLock has switched all customers over to the LifeLock Identity Alert system. ^[6]

[edit] Marketing

Lifelock's Web site^[2] states: "Our Guarantee: If your Identity is misused while you are our client, we’ll spend up to $1,000,000 to make it right." The television ads feature a truck advertising CEO Todd Davis' Social Security Number ^[7]. The ads also feature Carolyn Kepcher, gives information on the company, and how you can be safe using LifeLock.

Celebrity spokespersons for LifeLock have included Howard Stern, Paul Harvey, and Rush Limbaugh. ^[1] In June 2009, the WNBA's Phoenix Mercury and LifeLock have entered a multi-year marketing partnership to launch the first-ever branded jersey in WNBA or NBA history. A press conference was held at the NBA Store in New York City with Phoenix Mercury President and COO Jay Parry and LifeLock CEO Todd Davis to make the announcement. ^[8]

The partnership runs through 2011, and the LifeLock name will be on the front of Phoenix Mercury’s player jerseys and on warm-up suits. The Mercury and LifeLock are the first to finalize such an agreement following the WNBA’s decision this off-season to make this unique opportunity available for its teams and sponsors. As part of the partnership, LifeLock will be offering a one-year complimentary membership to season ticket holders of all WNBA teams.^[8]

LifeLock's Public Relations campaign is handled by Mindspace.

[edit] Controversy

Robert J. Maynard, Jr., one of the co-founders of the company resigned after it was revealed that he had once been an identity thief himself. ^[1] Maynard spent several days in a Maricopa County Jail in 2003 because of an alleged unpaid $16,000 casino marker from the Mirage. Maynard came up with the plan for LifeLock while sitting in his jail cell. While it's true Maynard spent that time in jail, he was not the victim of identity theft. The $16,000 casino marker was his. The Mirage had gotten a copy of his Arizona driver's license when it made him the loan.^[4]

In 2007, it was reported that the founder and CEO of LifeLock, Todd Davis, became the victim of fraud when someone used his published social security number to obtain a $500 loan.^[9] LifeLock apparently investigated the crime and found the alleged criminal. In an agreement with LifeLock, the alleged identity thief agreed on camera to perform community service to avoid prosecution. However, police then claimed that the alleged identity thief could not be prosecuted because LifeLock coerced the suspect into making a videotaped confession that isn't admissible in court.^[10]

In February 2008, the credit information company Experian sued LifeLock for fraud and false advertising. Experian alleged that LifeLock initiated false credit fraud alerts on Experian customer accounts and misled the public as to the necessity of its services.^[9][11]

A class action lawsuit alleges that as of 2008, there are at least 25 people using Todd Davis' social security number and that the advertising claims are misleading. The Company has responded demonstrating that the 25 alleged identity thieves are public records of failed attempts to use Todd Davis' identity. ^[12]

[edit] References