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.

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