LifeLock

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LifeLock Inc.
Subsidiary
Founded2005; 14 years ago (2005)
FoundersRobert Maynard Jr.
Todd Davis
Headquarters,
United States
RevenueIncrease $587.47 million (2015)
Decrease –$84.75 million (2015)
Decrease –$51 million (2015)
Total assetsIncrease$592.81 million (2015)
Total equityDecrease $318.07 million (2015)
Number of employees
788 (2016)
ParentNortonLifeLock
SubsidiariesID Analytics
Websitewww.lifelock.com Edit this on Wikidata
Footnotes / references
[1]

LifeLock Inc. (formerly NYSE:LOCK) is an American identity theft protection company based in Tempe, Arizona. LifeLock was founded by Robert Maynard Jr. and Todd Davis in 2005. LifeLock’s identity theft protection system detects fraudulent applications for credit and illegal use of personal information. It also monitors the use of personal information and credit score changes.[2][3] As of 9 February 2017, it is a subsidiary of Symantec.

In 2015, it was ordered to pay $100 million to settle Federal Trade Commission contempt charges for failing to protect consumer information and deceptive advertising, the largest monetary award obtained by the Commission for an enforcement action.[4] In 2017 it filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its common stock.[5]

History[edit]

LifeLock was co-founded in 2005 by Robert Maynard Jr. and Todd Davis.

Co-founder Robert J. Maynard began his career by founding the Internet Service Provider (ISP) Internet America in the late 1990s.[6] Former LifeLock CEO Todd Davis worked for Dell before founding Marketing Champions.[7]

In June 2007, Robert J. Maynard, Jr. resigned from LifeLock after claims that he was a victim of identity theft came under scrutiny.[8]

In 2007, co-founder Todd Davis publicly posted his Social Security number as part of an ad campaign to promote the company's identity theft protection services. Davis was a victim of 13 cases of identity theft between 2007 and 2008.[9][10] Regarding the campaign, Davis said, "We were trying to make the point that ... all it takes is one data breach. The point of that campaign was to take proactive steps to protect your identity."[11]

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.[12] LifeLock acquired ID Analytics following a round of funding in March 2012.[13] ID Analytics operates as a wholly owned subsidiary of LifeLock.[13]

As part of a 2009 settlement with Experian related to false fraud alerts allegations, LifeLock set up a service that does not rely on fraud alerts.[14][15][16]

In March 2012, ID Analytics, Inc. became a wholly owned subsidiary of LifeLock.[13]

Following the announcement of the company's IPO in August 2012, Hilary Schneider joined the company as president.[17] Schneider had previously been working with TPG Capital after leaving Yahoo in 2010.[17]

In December 2013, LifeLock acquired Lemon Wallet for $42.6 million.[18][19] Lemon was a digital wallet platform which stored payment, loyalty, and identification cards on members' smartphones.[20]

As of February 2014, LifeLock had 3 million subscribers.[11]

In 2015, the FTC obtained a $100 million monetary penalty against LifeLock, that was paid, with $68 million held for class-action refunds to customers in relation to false advertising and failed service delivery allegations.[21][22]

On February 9, 2017, LifeLock was acquired by Symantec for $2.3 billion.[23][24]

Funding[edit]

The company started with $2 million in seed funding, with another $5 million in its Series A funding in 2006 from Bessemer Ventures.[25][26]

In April 2007, LifeLock raised $6 million in its series B funding from Kleiner Perkins Caufield & Byers.[25] The following January, its Series C Funding ended with $25 million, led by Goldman Sachs Group, Inc.[27] In August 2009, a series D funding round raised $40 million for the company.[28] LifeLock raised $100 million in new equity funding from Bessemer Ventures Partners, Goldman, Sachs & Co., Kleiner Perkins Caufield & Byers, Symantec Corporation and River Street Management in March 2012.[29] The funds were used towards the acquisition of ID Analytics, an identity theft risk prediction technology.[13]

On August 28, 2012, LifeLock announced its plans to take its identity theft protection business public and filed for an initial public offering worth up to $175 million.[30] On October 3, the company was listed on the New York Stock Exchange and trades under the symbol LOCK, according to its U.S. Securities and Exchange Commission filing.

Affiliations[edit]

LifeLock markets its services through industry partnerships with private enterprises, the entertainment industry, and financial institutions, also relying on radio show advertisements and celebrity spokespersons like Howard Stern.[31][32]

From 2008 to 2010, LifeLock partnered with NASCAR, creating the Chicagoland Speedway LifeLock.com 400 Sprint Cup Series.[33][34][35]

From June 2009 to 2013, LifeLock partnered with the Women's National Basketball Association's Phoenix Mercury, launching the first branded jersey in the Women's National Basketball Association.[36]

LifeLock maintains discount partnerships with American Airlines[37] and Northrop Grumman.[38]

Corporate social responsibility[edit]

In 2010, LifeLock partnered with the Law Enforcement Executive Development Association (FBI-LEEDA) to provide identity theft education seminars to law enforcement officials.[39] In February 2014, LifeLock collaborated with the National Parent Teacher Association (PTA) to develop interactive digital tools to teach children safe online habits.[40]

Controversies[edit]

Robert J. Maynard, Jr., a co-founder of the company, resigned in June 2007.[8][41]

In March 2010, LifeLock was fined $12 million by the Federal Trade Commission for deceptive advertising.[42] The FTC called the company's prior marketing claims misleading to consumers by claiming to be a 100% guarantee against all forms of identity theft.[43]

In 2015, the FTC found LifeLock to be in contempt of the 2010 agreement, charging that they "failed to establish and maintain a comprehensive information security program", and "falsely advertised that it protected consumers' sensitive data". The FTC obtained a $100 million monetary penalty against LifeLock to settle the contempt charge. Of that fine, $68 million is to be held for class-action refunds to LifeLock customers.

See also[edit]

References[edit]

  1. ^ "Form 10-K". LifeLock, Inc. Securities and Exchange Commission. 2014. Retrieved 27 July 2015.
  2. ^ Carlson, Debbie (January 31, 2014). "Protect financial information from theft". Chicago Tribune. Retrieved May 30, 2014.
  3. ^ Fox, Emily Jane (December 19, 2013). "4 things to do after your credit card has been hacked". CNN Money. Retrieved May 30, 2014.
  4. ^ "LifeLock to Pay $100 Million to Consumers to Settle FTC Charges it Violated 2010 Order" (press release). Federal Trade Commission. December 17, 2015. Retrieved December 17, 2016.
  5. ^ "LifeLock, Inc.: Private Company Information - Bloomberg". www.bloomberg.com. Retrieved 2018-06-12.
  6. ^ Stern, Ray (2007-05-31). "What Happened in Vegas..." Phoenix New Times. Retrieved 2019-01-27.
  7. ^ "High Five: Meet Todd Davis, CEO Of LifeLock". InformationWeek. Retrieved 2019-11-14.
  8. ^ a b Zetter, Kim (2007-06-11). "LifeLock Founder Resigns Amid Controversy". Wired. ISSN 1059-1028. Archived from the original on 2009-05-05. Retrieved 2019-04-19.
  9. ^ Zetter, Kim (2010-05-18). "LifeLock CEO's Identity Stolen 13 Times". Wired. ISSN 1059-1028. Archived from the original on 2010-05-21. Retrieved 2016-12-17.
  10. ^ Vijayan, Jaikumar (2010-05-19). "LifeLock CEO said to be victim of identity theft 13 times". Computerworld. Retrieved 2019-04-19.
  11. ^ a b Lowery, Ilana (February 20, 2014). "LifeLock CEO shares more than SSN in first 'Reporter's Notebook' event". Phoenix Business Journal. Retrieved May 30, 2014.
  12. ^ O'Grady, Patrick (2008-12-17). "LifeLock, TransUnion team to fight identity theft". Retrieved 2008-12-18.
  13. ^ a b c d Rao, Leena (March 15, 2012). "Identity Theft Protection Company LifeLock Raises $100M From Kleiner, Symantec; Acquires ID Analytics". TechCrunch. Retrieved May 30, 2014.
  14. ^ "Fraud-prevention pitchman becomes ID theft victim". Archived from the original on 2008-05-26. Retrieved 2008-05-22.
  15. ^ Desmond, Maurna (2008-02-21). "Experian Sues LifeLock For 'Abusing' Fraud Alert System". Forbes. Archived from the original on 2008-05-28. Retrieved 2012-09-11.
  16. ^ Johnson, Andrew (2009-10-23). "LifeLock, Experian settle case over alerts". The Arizona Republic. Gannett Company. Retrieved 2019-04-19.
  17. ^ a b Swisher, Kara (September 10, 2012). "In the Vault: Former Yahoo Exec Hilary Schneider Set to Join IPO-Bound LifeLock as President". All Things D. Archived from the original on June 5, 2014. Retrieved May 30, 2014.
  18. ^ Fitchard, Kevin (December 12, 2013). "LifeLock buys mobile wallet Lemon for $42.6M". Gigaom. Retrieved May 30, 2014.
  19. ^ Fiegerman, Seth (December 12, 2013). "LifeLock Acquires Lemon App For $42 Million to Develop Digital Wallet". Mashable. Retrieved May 30, 2014.
  20. ^ Perez, Sarah (December 12, 2013). "LifeLock Acquires Mobile Wallet Platform Lemon For $42.6 Million, Launches LifeLock Wallet". TechCrunch. Retrieved May 30, 2014.
  21. ^ "LifeLock to Pay $100 Million to Consumers to Settle FTC Charges it Violated 2010 Order". December 17, 2015.
  22. ^ Nichols, Shaun. "LifeLock didn't live up to their hype, and now they're $100m lighter". The Register. Situation Publishing. Retrieved December 17, 2016.
  23. ^ Molina, Brett. "Symantec to acquire LifeLock for $2.3B". USA Today (2016-11–21). Retrieved 2016-11-21.
  24. ^ www.bizjournals.com https://www.bizjournals.com/phoenix/news/2017/02/09/symantec-completes-acquisition-of-tempes-lifelock.html. Retrieved 2019-11-14. Missing or empty |title= (help)
  25. ^ a b Malik, Om (April 23, 2007). "Lifelock gets $6 million from Kleiner Perkins". Gigaom. Retrieved May 30, 2014.
  26. ^ "Symantec Partners with LifeLock to Unite $40M in Funding". Search Concepts. August 13, 2009. Archived from the original on June 5, 2014. Retrieved May 30, 2014.
  27. ^ Kress, Adam (January 23, 2008). "LifeLock gains $25 million in third-round funding to support growth". Phoenix Business Journal. Retrieved May 30, 2014.
  28. ^ Marshall, Matt (August 5, 2009). "Symantec helps pump $40M into identity theft protection company Lifelock". VentureBeat. Retrieved May 30, 2014.
  29. ^ O'Grady, Patrick (March 14, 2012). "LifeLock gets $100 million investment, purchases ID Analytics". Bizjournals.com.
  30. ^ "Lifelock expects to price IPO at $9.50-$11.50". MarketWatch. Retrieved September 25, 2012.
  31. ^ "Analyst Day Presentation". Securities & Exchange Commission. Retrieved May 30, 2014.
  32. ^ "Rush Limbaugh Sponsor LifeLock: Why We're Sticking With Rush". March 5, 2012. Retrieved 2012-03-23.
  33. ^ "2008 NASCAR Lifelock 400". IMDb Pro. Retrieved May 30, 2014.
  34. ^ "Kansas Speedway announces Lifelock as title sponsor for the NASCAR Nextel Cup Series Race". Kansas Speedway. September 12, 2007. Retrieved May 30, 2014.
  35. ^ Bonkowski, Jerry (July 9, 2009). "Falling short of the goal". ESPN Chicago. Retrieved May 30, 2014.
  36. ^ "Mercury, LifeLock Break New Ground with Partnership". Phoenix Mercury. Retrieved May 30, 2014.
  37. ^ "LifeLock AAdvantage". Aa.com. Retrieved 2012-07-30.
  38. ^ "LifeLock". Benefits.northropgrumman.com. Retrieved 2012-08-22.
  39. ^ "FBI Partners with LifeLock to Fight Identity Theft". Identity Theft Resource Center. June 21, 2013. Retrieved May 30, 2014.
  40. ^ Schaffhauser, Dian (February 14, 2014). "PTA and LifeLock Developing Learning Kits To Teach Good Digital Habits". The Journal. Retrieved May 30, 2014.
  41. ^ Casacchia, Chris (2007-06-12). "LifeLock founder resigns amid questions about his past". bizjournals.com. Retrieved 2007-06-19.
  42. ^ Singel, Ryan (2012-10-03). "LifeLock's IPO Is Unimpressive, But Not as Bad as Its Checkered Past". Wired. ISSN 1059-1028. Retrieved 2019-04-19.
  43. ^ "LifeLock, Inc., a corporation". Federal Trade Commission. 9 March 2010. Retrieved 14 March 2019.

External links[edit]