FTC Charges LifeLock with Failure to Protect Credit Card, Bank Account Data

By Tanaya Macheel July 22, 2015, 11:03 a.m. EDT 1 Min Read

Consumer banking

LifeLock Buys ID Analytics to Boost Its Appeal to Banks

LifeLock is betting that its acquisition of ID Analytics, which closed Wednesday, will help it better market its services to retail banks.

By Sean Sposito

March 14
Community banking

ID-Theft Protection Could Draw Regulatory Target on Small Banks

A spike in security breaches might make such protection more appealing to customers, even though regulators are taking a closer look at banks that offer such add-on products.

By Jackie Stewart

March 17
Bank technology

Surprise — ID Theft Is Down Despite Data Breaches

Roughly 12.7 million Americans were hit with identity fraud in 2014, a 3% drop from a year earlier, while losses tied to that fraud fell 11% to $16 billion, said the study, which was released by Javelin Strategy & Research.

By Penny Crosman

March 3

Identity theft protection company LifeLock is coming under fire from the Federal Trade Commission for failing to adequately protect customers' credit card and bank account data, Social Security numbers and other sensitive personal information, among other allegations.

The agency filed documents Tuesday with the U.S. District Court for the District of Arizona asking it to reinforce a 2010 Order against LifeLock, which has ostensibly violated the obligations of its settlement with the FTC and 35 other states.

The suit accused LifeLock of using false claims to promote its identity theft services. As part of the $12 million settlement, the company and its principals agreed to end the deceptive claims and employ stricter protections of customer data.

Now, the FTC alleges that for at least 17 months from October 2012, LifeLock violated its order by "failing to establish and maintain a comprehensive information security program" to protect user data. It also says the company falsely claimed sensitive user data was protected with "the same high-level safeguards as financial institutions."

The agency is also asking that the Court require LifeLock to provide full redress to customers affected by its violations.

"It is essential that companies live up to their obligations under orders obtained by the FTC," said Jessica Rich, director of the FTC's Bureau of Consumer Protection. "If a company continues with practices that violate orders and harm consumers, we will act."

Tanaya Macheel

Reporter