LifeLock to pay $100M for not protecting data

Posted at 12:48 PM, Dec 17, 2015
and last updated 2015-12-17 17:41:04-05

You hire LifeLock to protect against identity theft, but the Federal Trade Commission says the Tempe based company wasn’t doing that.

The FTC says that from October, 2012 to March, 2014, LifeLock wasn’t fully protecting “sensitive information, including credit card, social security, and bank account numbers" that belonged to its customers.

And during that time, the agency says the company was “falsely advertising that it protected consumers’ sensitive data with the same high-level safeguards as financial institutions.”

The FTC says LifeLock violated a 2010 settlement order. That means LifeLock will pay $100 million with $68 million going back to customers.

Read the full FTC settlement here. 

In a statement, LifeLock “neither confirms nor denies the allegations of the parties.”

The company says “the allegations raised by the FTC are related to advertisements that we no longer run and policies that are no longer in place. The settlement does not require us to change any of our current products or practices. Furthermore, there is no evidence that LifeLock has ever had any of its’ customers’ data stolen and the FTC did not allege otherwise.”

Read the full LIfeLock statement here. 

Before hiring any identity theft protection services or any other company, run an internet search with the name of the company.

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