CEO of ID theft protection service under fire after his SSN is misused
The man behind an online fraud and identity theft prevention service is being sued in multiple states over his stance that customers' identities will not be stolen.
LifeLock was designed and marketed for several years as the one-stop shop to identity protection, with the company alerting you if someone tried to apply for a credit card or similar action using your personal information. Although most citizens are willing to try to monitor their own activities using various credit bureaus, LifeLock provides the service for $10 per month, and will pay up to $1 million to each member if his identity is stolen. The service does not protect against fraudsters using stolen SSNs on job applications or for medical benefits.
Several LifeLock clients have filed class action lawsuits against CEO Todd Davis and LifeLock in New Jersey, West Virginia, and Maryland, claiming false advertising.
Davis has boldly posted his own Social Security number on the front page of his Web site, citing his absolute "confidence LifeLock is protecting my good name and personal information, just like it will yours." Number 457-55-5462, his site now claims, is "the most famous Social Security number in the world."
But Davis admitted his identity has been stolen at least one time successfully, by a fellow taking out a $500 loan using that famous number; and that there have been 87 additional attempts by identity thieves. A statement on the LifeLock Web site sets the number of individuals having reported their identities stolen at 105, adding, "LifeLock's $1 Million Total Service Guarantee completely covered every one of them."
A separate lawsuit in Arizona focuses solely on that service guarantee, with plaintiffs stating it only covers errors by LifeLock, and doesn't guarantee money will be paid out. Furthermore, a lawsuit has been filed against LifeLock in California by credit reporting agency Experian, with the company accusing LifeLock of deception and trickery.
Davis has received strong criticism for his advertising methods over the years, with TV ad clips, newspaper and billboard images, even with him walking down the street and promoting his company using a bullhorn.