LifeLock

LifeLock Inc.

Type	Privately held
Founded	2005
Headquarters	Tempe, Arizona, United States
Website	www.lifelock.com

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 loans. 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."

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, 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 Number. 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.

Awards & Recognitions

In September 2010, LifeLock is recognized as a 2010 Communitas 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

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 marker 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.