LifeLock
Encyclopedia
LifeLock Inc. which was founded in 2005, is an American
identity theft
protection company.
According to the LifeLock website, for a minimum fee of $10 a month, the LifeLock Identity Alert system can identify fraudulent applications for some forms of credit and non-credit related services. These include some 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 loan
s. LifeLock will also opt-out members from pre-approved credit card offers on their behalf in order to reduce unwanted mail. The service guarantee states that "if you become a victim of identity theft while you are a LifeLock member because of some failure or defect in our service... we will spend up to $1 million to hire lawyers, investigators, consultants and whatever else it takes to restore your name and help you recover the direct losses from the identity theft." The service guarantee does not cover any direct losses as a result of the theft.
In 2009 the company was found guilty of defrauding customers and Experian
by keeping their credit information in a state of constant "fraud alert."
Former LifeLock CEO Todd Davis was the victim of identity theft 13 times during 2007 and 2008, after he "publicly posted his Social Security number on billboards and in TV commercials as part of a campaign to promote his company's credit monitoring services".
Robert J. Maynard, Jr., company co-founder, resigned in June 2007 amid allegations that he had stolen his father's identity and ran up $150,000 in American Express bills.
In March 2010 LifeLock was fined $12 million by the Federal Trade Commission
(FTC
), "to settle charges that the company used false claims to promote its identity theft protection services, which it widely advertised by displaying the CEO’s Social Security number on the side of a truck."
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.
, 457-55-5462. The ads also feature Carolyn Kepcher and give information on the company.
Celebrity spokespersons for LifeLock have included Howard Stern
, Paul Harvey
, Mark Levin
, and Rush Limbaugh
. In June 2009, the WNBA's Phoenix Mercury
and LifeLock entered into 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.
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 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.
Leadership Winner for Law Enforcement Training Program. The same month, the company was named One of Arizona’s Most Admired Companies by Arizona Business Magazine
& BestCompaniesAZ
In August 2010, LifeLock receives Top Ten Ranking on Inc. Magazine’s Inc. 500 List. The same month, LifeLock is named Finalist in Lead411's Hottest Southwest
Companies list.
In July 2010, LifeLock wins International Stevie Award
In May 2010, LifeLock ranks #1 by TopTenREVIEWS
In 2009, LifeLock wins 2009 Arizona Corporate Excellence (ACE) Award
from The Mirage
. Under Nevada law, casino markers are considered the same as checks. Maynard came up with the plan for LifeLock while sitting in his jail cell. An investigation by the Phoenix New Times
revealed that $16,000 casino marker actually was his. The Mirage had gotten a copy of his Arizona driver's license when it made him the loan, and charges were dropped after Maynard repaid the marker. The New Times also found that Maynard had been banned for life from the credit-repair industry after an agency he owned was shut down for numerous deceptive practices. It also found evidence that he ordered an American Express
card in his father's name and ran up $150,000 in fraudulent charges.
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. 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.
Late in 2007, the New Times reported that the services LifeLock provides are actually available for free with a few phone calls. These findings were confirmed in 2008 by KGO-TV
in San Francisco.
In February 2008, the credit information company Experian
sued LifeLock for fraud
and false advertising
. Experian alleged that LifeLock placed false fraud alerts on behalf of its clients, thus keeping LifeLock clients' files in a constant state of alert. It also charged that LifeLock used false and misleading advertising. As part of a 2009 settlement, LifeLock set up a new proprietary service that doesn't rely on setting fraud alerts.
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.
In March 2010 LifeLock was fined $12 million by the Federal Trade Commission
(FTC
), "to settle charges that the company used false claims to promote its identity theft protection services, which it widely advertised by displaying the CEO’s Social Security number on the side of a truck." FTC Chairman Jon Leibowitz, referring to the LifeLock TV ad showing the truck, said that "the protection they provided left such a large hole … that you could drive that truck through it.” LifeLock will pay $12 million to settle charges by the FTC and 35 states that the company's Identity Theft Prevention and Data Security claims were false.
In May 2010 the Phoenix New Times
reported that LifeLock CEO Todd Davis has been a victim of identity theft at least 13 times since 2007, which is 12 more times than has previously been known.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
identity theft
Identity theft
Identity theft is a form of stealing another person's identity in which someone pretends to be someone else by assuming that person's identity, typically in order to access resources or obtain credit and other benefits in that person's name...
protection company.
According to the LifeLock website, for a minimum fee of $10 a month, the LifeLock Identity Alert system can identify fraudulent applications for some forms of credit and non-credit related services. These include some 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 loan
Payday loan
A payday loan is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. The loans are also sometimes referred to as cash advances, though that term can also refer to cash provided against a prearranged line of credit such as a credit card...
s. LifeLock will also opt-out members from pre-approved credit card offers on their behalf in order to reduce unwanted mail. The service guarantee states that "if you become a victim of identity theft while you are a LifeLock member because of some failure or defect in our service... we will spend up to $1 million to hire lawyers, investigators, consultants and whatever else it takes to restore your name and help you recover the direct losses from the identity theft." The service guarantee does not cover any direct losses as a result of the theft.
In 2009 the company was found guilty of defrauding customers and Experian
Experian
Experian plc, formerly known as CCN Systems, is a global credit information group with operations in 36 countries. The company employs 15,500 people with corporate headquarters in Dublin, Ireland and operational headquarters in Nottingham, England and Costa Mesa, California, US...
by keeping their credit information in a state of constant "fraud alert."
Former LifeLock CEO Todd Davis was the victim of identity theft 13 times during 2007 and 2008, after he "publicly posted his Social Security number on billboards and in TV commercials as part of a campaign to promote his company's credit monitoring services".
Robert J. Maynard, Jr., company co-founder, resigned in June 2007 amid allegations that he had stolen his father's identity and ran up $150,000 in American Express bills.
In March 2010 LifeLock was fined $12 million by the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
(FTC
FTC
FTC may refer to:- Organizations :* Federal Trade Commission, a US agency for consumer protection* Ferencvárosi TC, a Hungarian sports club* Financial Training Center Limited, a training institution in Tanzania...
), "to settle charges that the company used false claims to promote its identity theft protection services, which it widely advertised by displaying the CEO’s Social Security number on the side of a truck."
Corporate profile
LifeLock was founded in 2005 and claims to provide protection against identity theft.In December 2008 LifeLock entered into an agreement with TransUnion
TransUnion
TransUnion is the third largest credit bureau in the United States, which offers credit-related information to potential creditors. Like major competitors Equifax and Experian, TransUnion markets credit reports directly to consumers.- History :...
, one of the three main credit bureaus, to automate the process of alerting customers of potential unauthorized access via their credit reports.
Marketing
LifeLock's Web site 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 NumberSocial Security number
In the United States, a Social Security number is a nine-digit number issued to U.S. citizens, permanent residents, and temporary residents under section 205 of the Social Security Act, codified as . The number is issued to an individual by the Social Security Administration, an independent...
, 457-55-5462. The ads also feature Carolyn Kepcher and give information on the company.
Celebrity spokespersons for LifeLock have included Howard Stern
Howard Stern
Howard Allan Stern is an American radio personality, television host, author, and actor best known for his radio show, which was nationally syndicated from 1986 to 2005. He gained wide recognition in the 1990s where he was labeled a "shock jock" for his outspoken and sometimes controversial style...
, Paul Harvey
Paul Harvey
Paul Harvey Aurandt , better known as Paul Harvey, was an American radio broadcaster for the ABC Radio Networks. He broadcast News and Comment on weekday mornings and mid-days, and at noon on Saturdays, as well as his famous The Rest of the Story segments. His listening audience was estimated, at...
, Mark Levin
Mark Levin
Mark Reed Levin is a lawyer, author and the host of American syndicated radio show The Mark Levin Show. Levin served in the cabinet of President Ronald Reagan and was a chief of staff for Attorney General Edwin Meese...
, and Rush Limbaugh
Rush Limbaugh
Rush Hudson Limbaugh III is an American radio talk show host, conservative political commentator, and an opinion leader in American conservatism. He hosts The Rush Limbaugh Show which is aired throughout the U.S. on Premiere Radio Networks and is the highest-rated talk-radio program in the United...
. In June 2009, the WNBA's Phoenix Mercury
Phoenix Mercury
The Phoenix Mercury is a professional basketball team based in Phoenix, Arizona, playing in the Western Conference in the Women's National Basketball Association . The team was founded before the league's inaugural 1997 season began; it is one of the eight original franchises...
and LifeLock entered into 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.
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 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.
Awards & Recognitions
In September 2010, LifeLock is recognized as a 2010 CommunitasCommunitas
Communitas is a Latin noun commonly referring either to an unstructured community in which people are equal, or to the very spirit of community. It also has special significance as a loanword in cultural anthropology and the social sciences....
Leadership Winner for Law Enforcement Training Program. The same month, the company was named One of Arizona’s Most Admired Companies by Arizona Business Magazine
AZ Business Magazine
Arizona Business Magazine, based out of Phoenix, Arizona, is the state’s leading monthly Business publication. Published by Arizona Big Media, the magazine covers a wide-range of topics focusing on the Arizona business scene, and is aimed at high-level Corporate executives and business owners.-...
& BestCompaniesAZ
In August 2010, LifeLock receives Top Ten Ranking on Inc. Magazine’s Inc. 500 List. The same month, LifeLock is named Finalist in Lead411's Hottest Southwest
Southwestern United States
The Southwestern United States is a region defined in different ways by different sources. Broad definitions include nearly a quarter of the United States, including Arizona, California, Colorado, Nevada, New Mexico, Oklahoma, Texas and Utah...
Companies list.
In July 2010, LifeLock wins International Stevie Award
Stevie Awards
The Stevie Awards were created in 2002 to honor and generate public recognition of the efforts, accomplishments, and positive contributions of companies and business people worldwide...
In May 2010, LifeLock ranks #1 by TopTenREVIEWS
In 2009, LifeLock wins 2009 Arizona Corporate Excellence (ACE) Award
Controversy
Robert J. Maynard, Jr., one of the co-founders of the company resigned in June 2007 amid questions about his past. Maynard spent several days in a Maricopa County Jail in 2003 because of an alleged unpaid $16,000 casino markerCredit (casino)
Casino credit is a marketing tool that, when used appropriately, can result in significant casino revenues. Casinos such as the Bellagio, Caesars Palace, The Mirage, and the Trump Taj Mahal Casino Resort rely heavily on casino customers who gamble on credit...
from The Mirage
The Mirage
The Mirage is a 3,044 room hotel and casino resort located on the Las Vegas Strip in Paradise, Nevada, United States.The Mirage is connected by a free tram to Treasure Island. The marquee in front of the Mirage is the largest free standing marquee in the world.-History:The Mirage was built by...
. Under Nevada law, casino markers are considered the same as checks. Maynard came up with the plan for LifeLock while sitting in his jail cell. An investigation by the Phoenix New Times
Phoenix New Times
The Phoenix New Times is a free, weekly Phoenix, Arizona newspaper, put out every Thursday. It is the founding publication of the New Times Media , but The Village Voice is now the flagship publication of that company....
revealed that $16,000 casino marker actually was his. The Mirage had gotten a copy of his Arizona driver's license when it made him the loan, and charges were dropped after Maynard repaid the marker. The New Times also found that Maynard had been banned for life from the credit-repair industry after an agency he owned was shut down for numerous deceptive practices. It also found evidence that he ordered an American Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
card in his father's name and ran up $150,000 in fraudulent charges.
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. 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.
Late in 2007, the New Times reported that the services LifeLock provides are actually available for free with a few phone calls. These findings were confirmed in 2008 by KGO-TV
KGO-TV
KGO-TV, channel 7, is an owned-and-operated television station of the Walt Disney Company-owned American Broadcasting Company, based in San Francisco, California...
in San Francisco.
In February 2008, the credit information company Experian
Experian
Experian plc, formerly known as CCN Systems, is a global credit information group with operations in 36 countries. The company employs 15,500 people with corporate headquarters in Dublin, Ireland and operational headquarters in Nottingham, England and Costa Mesa, California, US...
sued LifeLock for fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
and false advertising
False advertising
False advertising or deceptive advertising is the use of false or misleading statements in advertising. As advertising has the potential to persuade people into commercial transactions that they might otherwise avoid, many governments around the world use regulations to control false, deceptive or...
. Experian alleged that LifeLock placed false fraud alerts on behalf of its clients, thus keeping LifeLock clients' files in a constant state of alert. It also charged that LifeLock used false and misleading advertising. As part of a 2009 settlement, LifeLock set up a new proprietary service that doesn't rely on setting fraud alerts.
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.
In March 2010 LifeLock was fined $12 million by the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
(FTC
FTC
FTC may refer to:- Organizations :* Federal Trade Commission, a US agency for consumer protection* Ferencvárosi TC, a Hungarian sports club* Financial Training Center Limited, a training institution in Tanzania...
), "to settle charges that the company used false claims to promote its identity theft protection services, which it widely advertised by displaying the CEO’s Social Security number on the side of a truck." FTC Chairman Jon Leibowitz, referring to the LifeLock TV ad showing the truck, said that "the protection they provided left such a large hole … that you could drive that truck through it.” LifeLock will pay $12 million to settle charges by the FTC and 35 states that the company's Identity Theft Prevention and Data Security claims were false.
In May 2010 the Phoenix New Times
Phoenix New Times
The Phoenix New Times is a free, weekly Phoenix, Arizona newspaper, put out every Thursday. It is the founding publication of the New Times Media , but The Village Voice is now the flagship publication of that company....
reported that LifeLock CEO Todd Davis has been a victim of identity theft at least 13 times since 2007, which is 12 more times than has previously been known.