We’ve all seen the commercials advertising LifeLock as the savior of identity theft and would pay out high sums of money if a breach occurred. Well a breach has occurred and it was a breach of trust on the part of LifeLock. Numerous court suits were filed in 2008 and now the FTC has stepped in. If it seems too good to be true, it usually is.
The FTC charged that LifeLock’s data was not encrypted, and sensitive consumer information was not shared only on a “need-to-know” basis. In fact, the agency charged, the company’s data system was vulnerable and could have been exploited by those seeking access to customer information. In one of the largest FTC-state coordinated settlements on record, LifeLock and its principals will be barred from making deceptive claims and required to take more stringent measures to safeguard the personal information they collect from customers.
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