Is Lifelock a scam?
Posted By: Dr. Frugal in Budget on 08/04/2007 at 12:07:41
With all of the news recently about ID theft and other general security breaches, you might be considering getting something that could effectively be called ID theft insurance. There are two leading companies, Lifelock and Debix, that cover personal insurance but we're only going to look at Lifelock right now, since they're the more well-known company. And I guess it would be a good time to answer the question: Is Lifelock a scam?
Not to sound off-putting but it really depends on what you consider a scam. The service that Lifelock provides is definitely something you can do yourself but I'm not sure that makes it a scam. Ignoring the oft-suggested mafia ties to the waste management business, you could take all of your trash to the landfill but you probably pay them to do it for you. Like most services, it's more about convenience than actual need. Lifelock simply requests locks on your credit so that you're required to approve everything manually. Personally, I don't think that part is a scam. That said, the fact they offer $1m in "protection" doesn't mean a whole lot to me. Again, I think it's just a marketing tactic and while I certainly don't think Robert Maynard is going to be canonized for his work, as far as I can tell it's just a service, not a scam.
Comments
Posted by Steve at March 9, 1973, 10:39 am:
I agree in thinking its not a scam. I personally don't have it and have no intention of getting it, but I think for the most part our entire American existence is based upon paying other people to do things you could do yourself.
Posted by Erin at October 25, 2007, 9:08 pm:
I have a monthly subscription because I do a ton of shopping for home business online. I think it's like any other insurance--a total ripoff until you need it.
Posted by jdoe at April 1, 2008, 2:45 pm:
Did you know someone's bringing a class action suit against these guys? http://www.lifelockclassaction.com. I don't see the point in paying for what I can do myself with 3 phone calls. You're protected for up to a million dollars anyway . . .
Posted by Jan T at April 7, 2008, 12:26 am:
LifeLock is a scam! They are charging a ton for everything an individual can do themselves for FREE if they had the info. Credit Card/Financial Identity Theft is only one type of ID Theft. The other areas of Identity Theft is 1) Social Security # - how many people are falsely using someone else's SS# to work in the US illegally? 2) Medical ID Theft - This is dangerous if the ID Theft has medical procedures under your identity which could identify you with diseases or different blood types. Dangerous! 3) Character ID Theft - If someone steals your identity and then commits a crime - guess who is going to go to jail the next time you're pulled over for a "fix it" ticket. YOU ARE! 4) Driver's License - I have been a Notary Public for the past 16 years and teach classes. False Driver's licenses are extremely easy to get which could be used fraudulently to purchase property under the victim's name and the disappear with the $$$. You need an Identity Theft product that checks every one of these areas. The crooks are getting better at being crooks! We have to get better at protecting ourselves! And Lifelock is NOT IT!
Posted by Dr. Frugal at April 10, 2008, 6:24 pm:
Hey Jan, with each passing day I suspect you're more and more right. The fact they're getting hit both a class-action lawsuit and also getting taken to court by Experian...yeah, it looks more scammy by the day.
Posted by Ryan at May 4, 2008, 11:43 pm:
And the thing when I read about LifeLock's TOS (Terms of Service) is they flag all the CRA's (Credit Reporting Agency) that your account/SSN is flagged for fraud... I wonder how this looks on Creditors when they see that... Okay, and now I do not want to pay the monthly/etc service anymore... hmmmmmmmmmm ;)
Posted by Todd at May 18, 2008, 8:55 pm:
I have no problem to have a company do this fraud holds on my credit each month. I will continue to monitor this though as I am a LifeLock subscriber, but do not want to get taken.
Posted by Dan at May 21, 2008, 12:44 pm:
It should tell you something that the CEO has been caught lying, and his identity has been compromised multiple times.
Posted by Is LifeLock Selling a Lie? at May 22, 2008, 9:03 am:
I recently did a lot of digging into LifeLock. They may not be selling a scam, but their business practices are certainly questionable, if not illegal. You can click on the name of this comment to read my conclusions.
Posted by dave at May 22, 2008, 3:35 pm:
it has worked well for me. Actually caught someone trying to use my name/drivers license number to get phone service. Well worth the peace of mind, in my book. They renew the alerts automatically every 3 months, which is required, and you are notified by all 3 credit agencies when that takes place. It is no scam. What is a scam is experian, etc selling our info for profit, which is what is REALLY behind the bogus law suits. Read on: http://www.techcrunch.com/2007/06/17/the-hit-job-on-lifelock/
Posted by did more research than you at June 29, 2008, 1:34 pm:
Many of you need to do some research before spilling your lies. Lifelock not only requests fraud alerts from all 3 major bureaus, every 3 months, but also searches ID theft websites to ensure your information is not being sold, takes your name off of credit mailing lists (and does this each time it expires). And Jan, Lifelock helps to prevent all of those types of scams by securing your SSN, name, and address, which are used in medical, license, etc theft. Basically, lifelock is not selling a service that everyone can do on their own. Not to mention, if they screw up, they will pay to have everything corrected. So instead of you having to call the 3 bureaus every 3 months, searching the Internet to find people selling/using your information, calling to have your name removed from mailing lists constantly, and hiring lawyers, investigators, etc to repair ID theft, Lifelock does it for you. You're telling me that I have the time and money to do all of that? I don't think so.
Posted by my 2 cents. at July 11, 2008, 2:17 am:
I am not trying to pursuade anyone one way or the other. I do not have this service, but my friend does. She was supposed to be recieving S.S. checks (Her dad passed when she was 15). She assumed her mom was getting them cashed and using the money to raise her. When she turned 18, she got somekind of statement that said she had recieved "X" amount of dollars, so she asked her mom and her mom said she never recieved any checks. My friend tried for a year to find out what had been going on. She subscribed to lifelock and less than a month later, they sent my friend a letter asking if she moved because someone was inquiring about her S.S. checks in Rhode Island. They caught the people using her SS# and collecting her money. Lifelock didn't reimburse her for the money she lost (Because it happened before she subscribed) but she is seeking damages in a lawsuit against the people who stole her SS#. Still don't know if I would subscribe, but she is happy and last I checked she still has Lifelock. She says it is worth it because she doesn't worry all the time. I guess it's all on how you look at it.
Posted by at July 19, 2008, 6:36 am:
Lifelock is weak protection at best. It is not about what they say they do. They do not do much. Don't be scammed. Debix is the only company that protects you. All Lifelock does is react after the identity theft happens. That makes no sense. Debix STOPS it before it happens.
Posted by Frank at July 23, 2008, 11:52 am:
"Lifelock is weak protection at best. It is not about what they say they do. They do not do much. Don't be scammed. Debix is the only company that protects you. All Lifelock does is react after the identity theft happens. That makes no sense. Debix STOPS it before it happens." - You are an employee of debix.
Posted by TheDude at August 20, 2008, 8:14 am:
Lifelock is not a scam, but a service of convenience. Yes, anyone can do the same things. However, you have to do it every 90 days. I tend to forget these things and I am willing to pay to have that convenience. Also, they are not the end be all of ID Theft protection. Nothing is. But it is better than nothing. You combine that with some good knowledge on protecting your data and you can deter a lot of potential incidents. How many of you shred your bills, hand out your socials over the phone, or even talk to someone about your private info on a cell phone in a public space. If you do or don't do any of those things then Lifelock will be little help. It simply protects from additional credit being opened in your name. Read the info, don't listen to everyone's opinion.
Posted by Not the Dude at August 24, 2008, 2:45 am:
"They do not do much."
Posted by Alex at September 4, 2008, 8:03 pm:
Well I have lifelock and I don't see anything wrong with paying someone 10 bucks a month to protect my identity. you cant buy much for 10 bucks a month these days anyways.
Posted by todd at December 17, 2008, 9:53 pm:
i have lifelock and like everything else..its an insurance to protect you when needed..i think car, house, life, and medical insurance is also a scam, especially when you have to pay a deductible you cannot afford, so you are stuck with nothing. at least lifelock will save me the trouble and time investigating someone in another country using my identity
Posted by Darrell at December 29, 2008, 8:45 am:
I think to call something a scam is harsher than calling something a bad value. Lifelock puts a lock on your credit file, which is something you can do yourself with a phone call to the 3 major bureaus. You have always had the ability to lock your credit file on your own. It's a question of value. Lifelock does not act with a power of attorney to restore your "good name" as the advertisements claim, but provide you with the basic letter of dispute that is also available for anyone who looks for it. I think, again, scam is harsh, but questioning it's value.
Posted by idiotsrus at January 9, 2009, 6:55 am:
"Lifelock not only requests fraud alerts from all 3 major bureaus, every 3 months, but also searches ID theft websites to ensure your information is not being sold, takes your name off of credit mailing lists (and does this each time it expires). And Jan, Lifelock helps to prevent all of those types of scams by..." If you believe they search "ID theft websites" you're a completely naive fool. I'm guessing the person that wrote this is actually a shill for lifelock. I would call any company a scam that sells something that can be obtained for free. Even if they're not a scam, I would question their business quite a bit. Read these articles: http://www.phoenixnewtimes.com/2007-05-31/news/what-happened-in-vegas/1 http://blog.wired.com/27bstroke6/2007/06/lifelock_founde_1.html
Posted by bobby at January 12, 2009, 1:53 pm:
Sure you can do it for free. I can also paint my house myself for free too but I pay someone else to get it done.
Posted by confused and concerned at February 16, 2009, 1:10 pm:
Thank you all for the information posted here. The news articles were very helpful. It is nice to know about the men behind the scenes prior to committing to a contract. I was unaware that we could call the Big 3 and request a Red Flag be placed on my credit account. This I found very intersting. I plan to do this right away. SO what if I have to call every 3 months at least it beats the alternative. I am undecided if I will hire LifeLock but I am sure I will begin making the 3 very important calls. If you have any other advice please share it with me. Thank you again!
Posted by at February 17, 2009, 9:54 am:
Dear "confused and concerned" - I use Lifelock's services and there is no contract - you can come and go as you please.
Posted by Annonoymous at February 22, 2009, 9:37 pm:
When I called the three credit bureaus I wasn't able to put a red flag on my account. Maybe they changed the phone menu options, but it seemed to me you had to report it STOLEN, which i don't want to do necessearly yet. I lost or had my SS card stolen from my wallet, but not the entire wallet, I dont know if a friend or associate would of taken it, but that is what I suspect. Someone who may know where I live, my phone number, etc, could have my information. I am 18 turning 19, have no credit cards, etc, but who's to say they wont use it when I get 25? I am concerned, and wish the government, had some type of "report" with actually reporting it completely stolen and filing a false police report, which could get you in trouble. If anyone has any information on how I can report it lost/stolen, without actually accusing someone, please let me know.
Posted by Annonoymous at February 22, 2009, 9:39 pm:
I am concerned, and wish the government, had some type of "report" without* actually reporting it completely stolen and filing a false police report, which could get you in trouble. If anyone has any information on how I can report it lost/stolen, without actually accusing someone, please let me know.*** Reposted final part of message for grammar.
Posted by confused at March 2, 2009, 12:19 pm:
Everyone keeps bringing up that u can call the three credit bureaus. Anyone know no.? Please leave. I believe anything can be a scam but as long as u monitor ur credit regularly, u can not be so uptight. Word of advice. Don't trust anybody with personal info except for well known agencies.
Posted by GIT-4-DONE at March 4, 2009, 8:30 pm:
this is off topic, but i received and email a few days ago about a credit card scam, in which an "agency" will call you and verify your credit card number and your address which they will tell you this information, and they tell you that you are eligible for this and that free stuff, and after they do all their "verifying" they ask you to verify one more thing, the cvvn number from the back of your card, the last 3 digits, this is the only information about you that they dont have, which they cant do anything without, if you tell them this, they will charge you up to $500 to your credit card, because typically $500 is the fraud alert limit for credit card companies, and you will be screwed. i just forwarded this email as usual and went on about my day, but this time, i actually got called by one of these companies tonight, it was "financial education of america" from 1-800-941-0362, and they did exactly such. please inform everyone you know of this scam, its sneaky and if you dont know about it, you probably wont know any better then to give them your information. i have contacted the virginia state police about this and will continue to inform as many people as i can. these scammers are getting very inventive and sneaky so please be careful people.
Posted by Lifelock Scam at March 16, 2009, 3:57 am:
There have been several developments recently involving Lifelock being sued for aggresive marketing that clearly lies about the effectiveness of the Lifelock protection sice it was uncovered that Todd Davis' social security number has been used at least 20 times to succesfully apply for and receive driving licenses. There was even a guy in Texas who managed to get a payday loan using Davis' details.
Posted by me at April 3, 2009, 8:16 am:
I had lifelock for a year and i am going to reinsate it today. it is really great and it stopped all the credit card junk mail and it calls me whenever my soc sec #is being used. i loved it!
Posted by Matt at April 8, 2009, 12:13 pm:
I found it odd that the customers in the ad all had their identities stolen after they signed up. So I did some research. The company seems to be legit, though they do things that you could easily do yourself. Of particular note is the lawsuits being filed against them. Some may read that and think they're a scam. But they're not (or so it seems). Creditors and their customers are taking LifeLock to court because LifeLock is essentially stealing their business. LifeLock's safeguards are preventing these companies from issuing credit to LifeLock's customers. Thus, they loose business. So, if anything LifeLock seems to be anything but a scam. But again, you can do most of the things they do yourself.
Posted by Travis at April 9, 2009, 7:57 pm:
I don't know if I would call LifeLock a "scam." As others have mentioned, I think that's a little harsh. The bottom line is they provide a service you *could* do yourself. The question is, do you want to pay $110/year for the convenience? Before I started doing more digging into Lifelock, my answer was yes. However, after reading about all these lawsuits being filed against them and the fact that the CEO's SS# has been compromised several times, it's not worth it. I'll make a note to create these alerts myself every 3 months and save the money. Travis http://bestonlinestorage.com
Posted by Another perspective at April 10, 2009, 12:22 am:
Well. Here is a different perspective. I work at Lifelock. Todd is a good man. Though I am not in managment we have spoken on many occasions. He takes very good care of his employees, not easy to find these days, and has a great caring for the customers. His feet are not stuck in stone with fraud alerts. There are projects in the pipeline that will be more effective against Identity theft and other services that should do very well. It takes time to put these together, all the software has to be custom made,contracts have to be made up and signed etc. Identity theft goes back thousands of years. Give the man a chance to continue with his vision. He has some great ideas and is sincerly dedicated to fighting Identity theft.
Posted by AFsgt at April 18, 2009, 7:27 am:
Why did they hook up with Donald Trump? I consider him one of the all time worst crooks.
Posted by B at May 7, 2009, 9:12 pm:
I signed up for Lifelock after being a disenfranchised voter in the state I live in, thinking I got my social security number was compromised. Sure, you can report your info the credit bureaus and lock your info. Here's what I feel, after canceling my acct with Lifelock, I went to sign up for an Internet company aprox a month after I canceled the acct, they had my account locked for 3 months after this. What happened was I had 3 different people from that Internet call my cell phone to confirm it actually was me. Peace of mind? Yes. The fact that I know that this company sets parameters for when people try to access my info and I feel safe with the understanding I don't have to worry about some scammer taking my mail, finding my Identifying information, and using it for malicious purposes.
Posted by Bill at May 8, 2009, 3:49 pm:
"They are charging a ton for everything an individual can do themselves for FREE" To Jan T....not sure what you mean, if a person decides to pay just 10 bucks a month for something they do NOT want to do themselves, how is it a scam? I mean, how is it a scam if they are having someone else do it? Heck, I know in the computer business, people expect you to build a website for them for peanuts. You go to a convenience store, and pay extra for chips or a soda. You're paying for a service that is being done FOR you. So how is that a scam?
Posted by David M. at May 9, 2009, 7:17 am:
These guys are as much of a scam as identity thieves themselves. A half hour on the phone with their member services department proved that to me. I had my info stolen and someone fraudulently signed up a LifeLock account in my name (ironic, no?). These guys wouldn't lift a finger to help me out, it was obvious that they could care less, they got their money and were happy. Everyone, just so you know, all they do is sign up for that 90 credit fraud alert for you every 90 days. They sign you up with their phone number and then call you if they get a call. Guess what? You can just sign up your own phone number and get the exact same service for free. Just add a recurring event to your Google Calendar to fill out the online form quarterly and you're done. Not only is this cheaper, but you don't have to give all of your confidential info (e.g. SSN) to a bunch of scammers (e.g. LifeLock).
Posted by Fred at May 9, 2009, 3:19 pm:
Two things... 1. I agree with Bill (Posted by Bill at May 8, 2009, 3:49 pm). 2. I disagree with David (Posted by David M. at May 9, 2009, 7:17 am) The comparison is easy and the answer is even more simple... On a daily basis, I have a ton of things I need to remember, even more things that I need to do and I do not want to add one more stinking Calendar Reminder to "remind me" to place a timely Fraud alert every 90 days! Between my personal life and my business life, I've got too many e-addresses to monitor, too many e-mail to respond to, too many e-rules to update and maintain and too many phone numbers to manage. As Bill suggested, you are paying for "services" in most everything you do today, i.e., whether it is yard care or your health club. So BFD if I spend another $10 per month to ENSURE a most important aspect is correctly handled. Come some black day, if I were too busy and forgot to enter my own Fraud Alert (As David suggests)... and I suffered an Identiy Theft... I would rue the day I felt paying $.33 (thirty three cents) per day to a reputable agency was TOO MUCH to protect my Idenity. To David I say, you must either be 14 years old or the World's worst penny pinching fool. Fred
Posted by Exy at May 29, 2009, 3:57 pm:
LifeLock ruled a scam today. What a surprise! NOT! The company is living high on the hog, still giving bonuses, still providing FREE lunches for their employees every week, still flying their employees around the country and putting them up in FREE apartments with all the amenities, still spending hundreds of thousands of dollars to sponsor racing events, and still has Wii's in every building in every breakroom. You people aren't paying for protection, you're paying for the employees' entertainment! In THIS economy, Todd Davis is slapping every other American worker in the face! Those workers in the unemployment lines and taking pay cuts. So as those LifeLock execs sit in their comfy, expensive offices staring out at the Tempe Town Lake in the most expensive plot of land in the state of Arizona, I say - STICK IT TO THEM JUDGE!!!
Posted by lifelucksux at June 5, 2009, 10:10 pm:
I don't know I actually cancelled it after few months when I caught their BS that everytime my credit was enquired to apply for something that they would give me a call on my cell and ask for the secret word for approval. When it was time to get pre-approved for a mortgage, my bank queried up the wazoo and guess what not a single phone call from these folks that hey someone is using your information to apply for a loan. I called them up as to why I never got a phone call, they said "oh its because usually that kind of stuff such as loans and mortgages legit and not fraud." In paper on that pre-approvall all I filled out was basic stuff like ss#, address which anyone could of found out. I think I called their BS on that one and said to myself a) they really are not monitoring anything just giving you warm and fuzzies that they are when you pay them monthly. b) the bank thought my credit was compromised and worried when they saw the fraud alert and had to explain to them I had lifelock service (like someone said in the post, I'm sure that doesn't give the lenders and creditors warm and fuzzies when they see that)
Posted by Fantastic Hoax at June 13, 2009, 11:06 pm:
LifeLock is a very interesting story to say the least. When you first start with LifeLock you get a sense that you are really helping the members and that you are giving them not only identity theft protection but also internet protection and helping the member with a lost wallet or purse. However, soon after you start you realize the Hoax that LifeLock provides. You see, LifeLock tells it's members that their fraud alerts are being set. However, fraud alerts are not set on thousands of accounts and LifeLock's management is aware of it. A member will call because they haven't received a credit report for a year of LifeLock's membership and when it is researched it is because the member's fraud alerts were never set. Of course the member never knows and the fraud alert is manually set. The kicker is since the fraud alert was manually set the fraud alert will not be set in 90 days. Then there is there internet service that they say they score 10,000+ pirated websites. You first think that LifeLock actually does something in getting your information from these sites. Actually, all they do is notify you that your name and pertinent information are out on the internet and they do nothing else. Yes, LifeLock does for it's members what it's members can do for themselves. However, their is so much disception with this business that at some point you begin to feel dirty for taking innocent people's money. The one thing that LifeLock does best is to charge it's members. That is the one thing that does work and it works well. LifeLock is nothing more than a hoax and I hope the American public wakes up and sees it for what it really is, nothing more than a Hoax. Go Experian....
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