Lifelock Pays $100 Million for Not Protecting Customers
Lifelock is a company whose purpose is to monitor various sources to detect when its clients might become victims of identity theft. The company has agreed to pay $100 million for failure to do its job.
Specifically, the Federal Trade Commission charged that Lifelock violate a court order from 2010 requiring it to protect its clientele's personal information and of false advertising in their claim to secure data such as account information and Social Security numbers.
The charge in 2010 was that Lifelock ran misleading ads, claiming they would protect a customer's identity for $10 a month. The FTC discovered that all Lifelock was doing no more than putting fraud alerts on their clients' accounts and doing nothing to prevent the information from being used by identity thieves. The company was fined $12 million at the time.