FTC Claims Identity Theft Protection Service Misled Consumers


Written By ESR News Blog Editor Thomas Ahearn

The Federal Trade Commission (FTC) is claiming that LifeLock, Inc. violated a 2010 settlement with the FTC by allegedly continuing to make deceptive claims about the company’s identity theft protection services and by failing to take steps required to protect the data of users, according to a press release on the FTC website.

In documents filed under seal with the U.S. District Court for the District of Arizona, the FTC asked for an order requiring LifeLock to provide full redress to all consumers affected by the company’s alleged violations. The FTC charged that LifeLock violated the 2010 Order from at least October 2012 through March 2014 by:

  • Failing to establish and maintain a comprehensive information security program to protect the sensitive personal data of users including credit card, social security, and bank account numbers;
  • Falsely advertising that it protected the sensitive data of consumers with the same high-level safeguards as financial institutions; and
  • Failing to meet the 2010 order’s recordkeeping requirements.

The FTC also charged LifeLock falsely claimed to protect consumers from identity theft 24/7/365 by providing alerts “as soon as” it received any indication of problem from at least January 2012 through December 2014. The FTC Notice Under Seal is at https://www.ftc.gov/system/files/documents/cases/150721lifelocknotice.pdf.

Employment Screening Resources® (ESR) – “The Background Check Authority®” – protects consumer information used for background checks. ESR’s SOC 2 Audit Report confirms that ESR meets high standards for protecting consumer information from identity theft. To learn more, visit http://www.esrcheck.com/SOC-2/.

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