Was the LifeLock CEO really hacked? Find out what is really going on at LifeLock
UPDATED - The LifeLock FTC Settlement
LifeLock settled a lawsuit with the Federal Trade Commission. Here is our position on these events.
We've had an enormous number of questions from subscribers about what's really going on with LifeLock recently. Was LifeLock's CEO, Todd Davis, Really Hacked? What's the story with all the lawsuits? Is LifeLock insurance? Can you do the same thing LifeLock does yourself for free? And what about LifeLock's $1 million guarantee?
To get you answers, Scambusters.org Co-Director, Dr. Audri Lanford, interviewed Todd Davis. Here's the interview to give you some answers...
An Interview With LifeLock CEO, Todd Davis,
on What's Going on at LifeLock
Audri: LifeLock has been the target of a number of lawsuits lately. And we've had a lot of subscriber questions about what's going on. Can you briefly explain who is suing you -- and why?
Todd: As you know, LifeLock has been working on behalf of consumers for more than three years to provide a protective solution to the problem of identity theft. We have done this successfully while also doing all we can to change the way everyone conducts business when it comes to the storing and sharing of personal data. We have educated
over one million consumers to the measures they can take to reduce their risk from this crime and we have built a company strong enough to withstand many challenges.
As the very first company in this industry, we now find ourselves targets by law firms more willing to stretch the truth than be concerned about the real protection of consumers. As for the motivation of the law suits, I ask you, what are usually the motivations of these kinds of legal proceedings? I can only guess that some lawyers have promised a large pot of gold at the end of this legal rainbow. Do you believe it will be a credit bureau or a class action law firm that will lead the way in fighting against the fastest growing crime in America?
Audri: One fairly common question relates to whether or not people can perform the services you perform for free, and whether LifeLock hides the fact that they can do it without paying for LifeLock's service.
Todd: I think it is impossible to claim that we hide details of our service when it's clearly on our website, it's been stated over and over in the hundreds of interviews I have completed and we clearly use the analogies of changing your car's oil or doing your own taxes since the early days of our company.
Audri: Perhaps the issue we've had the most questions about is about your guarantee. One question relates to whether or not your guarantee is insurance, and who regulates it. Can you comment on this?
Todd: We have met with many state insurance commissioners to explain our $1 million service guarantee and have letters from more than 30 states that declare our service guarantee is NOT an insurance, primarily because we mitigate risk on the front end and are not just spreading the risk across a population. We will continue to meet with the additional states until we have final rulings from all 50.
As far as what LifeLock will do for its members... We will do everything that the law allows us to do to fix any problems, should some occur. You will notice that there is no one claiming that LifeLock has not fulfilled that commitment and any of the allegations.
Audri: We also got a lot of questions from subscribers very recently regarding the lawsuit where your customers in Maryland, New Jersey and West Virginia are suing you, claiming your service didn't work as promised.
Todd: Let's be clear, the lawsuits don't claim our service didn't work. They claim that it might not work as promised. You can make the same claims about your phone service, your cable service, your dry cleaning service and many more.
Anytime you decide to use a service you understand that there is the possibility it may not work. At LifeLock, we admit upfront that no one can prevent all forms of ID theft, so that's why our $1 million service guarantee plays such a vital role.
These lawsuits represent only four or five people who have NEVER complained to us about their service, NEVER cancelled and NEVER asked for a refund. They also NEVER claimed LifeLock did not fulfill its commitments. If our service failed them, why have they not cancelled when they can at anytime with no penalty?
The law firms want you to believe that there is a huge groundswell of negative feelings and hundreds of dissatisfied LifeLock members. Nothing could be farther from the truth, and in fact, we have heard from an overwhelming number of members who we have saved or assisted after the fact in full support and continue to see thousands of new members sign up daily as they look into the details of the allegations and the actual service being offered by LifeLock.
Audri: What do you say to critics that claim the LifeLock service doesn't work?
Todd: Again let's look at the facts. According to the FTC, nearly 3% of Americans are victims of identity theft each year. With over one million LifeLock members, you could expect LifeLock to have 30,000 victims. But as clear evidence LifeLock really works, only 110 individuals have been the victim of identity theft while with LifeLock.
In fact, among the 110 who have reported an identity theft, we have done what we promised and fixed the problems and now these members are some of our biggest supporters. This means that 99.9% of LifeLock members have not needed to invoke our guarantee.
Audri: But what about the case of your own identity being stolen -- the common phrase is "LifeLock CEO hacked" -- and the claims that more than drivers licenses are out in your name?
Todd: This is old news that we reported on more than a year ago and actually had articles written about. Now it's being dragged out again because lawyers and competitors believe it's in their best interests.
Yes, more than a year ago my information was used to obtain a $500 loan when the loan provider failed to validate the identity. This was not a failure on the part of LifeLock or the fraud alert system because neither were ever given the chance to succeed. The real problem is that there are companies operating which are allowed to issue these loans without validating an identity.
Still, the LifeLock system did what it has always claimed it would in support of any member and completely fixed the problems. I was not out any money and my credit score was not negatively impacted.
To go one step further as proof that our system works, there have been at least 87 other attempts to use my information since I began providing my social security number two years ago, but none have been successful... NONE!
As for the drivers licenses, not true. It's just another example of individuals making accusations, but not being able to back them up.
Audri: Thanks for taking time to talk to our subscribers -- I appreciate it.
Todd: Thank you for allowing me to address these concerns and know we will continue to spearhead the changes needed to better protect consumers and their personal information.
Audri: You can read more about our subscribers' 5 biggest identity theft protection questions here, including more about LifeLock and the services they provide.