Will LifeLock help repair your credit if your identity is stolen?
Filed under: Ripoffs and Scams, Fraud
The short answer to the question is no. The chance of LifeLock helping you repair your credit after an identity theft is next to none. But of course, the company doesn't want you to think that, or you'd probably never pay for their "service."One of the reasons LifeLock fans have given for their support of the company and its services is that they'll help you repair your credit. That's simply not the case, unless your identity theft meets one tiny little exception. LifeLock will only help you if you can prove that your identity theft was caused by a "defect" in their service.
Now that's not immediately clear in the marketing materials used by LifeLock. In fact, they say prominently on their website: "If your Identity is stolen while you are a member of LifeLock, we're going to do whatever it takes to recover your good name." The page then goes on to say that there's not much fine print to this guarantee, but that you should read it.
That's the important sentence. And there isn't much fine print because the company doesn't need any. Their fine print can be boiled down to one simple concept: They won't help you unless you can prove there was a defect in their service. Good luck with that. As long as they told the credit reporting agency to put a worthless "fraud alert" on your credit report as they say they will, it seems they're in the clear. Identity thefts are caused by stolen credit card numbers, theft of mail containing personal information, misuse of your information by people in a position to access it. None of those have anything to do with LifeLock, so they're not covered.
I suspect that most people who pay over $100 a year for the LifeLock service really believe that the company will help them recover from identity theft. But the company puts it in black and white: They most certainly won't help you unless you can prove their service was somehow defective.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
Reader Comments (Page 1 of 1)
6-23-2008 @ 4:54PM
Gary said...
Wow Tracy, you hit it dead on! I have been telling my clients this for a while now but LifeLock has built up such a big name that everyone just thinks they are the best. I welcome you comments on my website and services. www.peoplescreditservices.com. We are a newer company but have been in the consumer credit side for mortgage companies for the last 20 years. I welcome your comments.
Thanks!
Gary
www.peoplescreditservices.com
Reply
6-23-2008 @ 6:03PM
kelly said...
Oh My Gosh -r u kidding me?!?!?!?
you are saying you're legit -here's what your website says...
IDrestore
IDrestore is designed for consumers who are currently a victim of Identity Theft. Whether you are just getting started or have already invested countless hours of your time attempting to contact the long list of organizations necessary put a stop to your identity theft, PCS can save you endless amount of time and headaches. This solution will eliminate your need to waste any more of your time making endless phone calls. Our experts will relieve you of this frustrating chore and simplify the process. You will be provided the same great services as ID Safechoice and our Advocate will work until your identity is completely restored to its original good status.
$1295.00
AND YOU CALL LIFELOCK BAD?? wHAT A RIP-OFF!
ARE YOU KIDDING ME?
6-23-2008 @ 8:51PM
Tracy Coenen said...
I don't know Kelly. Pay Lifelock $100+ a year to do nothing, or pay this guy $1,295 to make all the phone calls for you. Isn't the person who's getting nothing for their money the one who's being ripped off?
7-15-2008 @ 5:09PM
Gary said...
Kelly,
First let me point out that you did not even compare apples to apples. The IDrestore that you point out is for severe cases of ID Theft that will require hours and hours of time and money to restore a person's identity. I do not want to make this a sales pitch for my company, but if you truly compare what I offer to what others offer, you will see a distinct difference!
I commend Tracy for helping consumers to make educated decisions. With all of the money put towards advertising these days, it is difficult to really understand what you are getting for your money. Instead of being critical of me, you should appreciate that someone cares enough to print the truth. Further, I welcome your criticism of my company but you will see that my information and products are consumer friendly! I have spent the last 20 years listening to consumers complain and have designed PCS to address their issues.
Gary
www.peoplescreditservices.com
Reply
7-15-2008 @ 5:01PM
noie said...
Hey Kelly,
When you get tired and frustrated of doing all the leg work yourself to restore your identity, you'll see that $1295 is a bargain to keep your sanity. Check out the federal trade commission's web site and take a look at all the steps one must take to try and restore their own identity. The list is endless, making a police report, filing affidavits for each creditor, fraud alerts every 90 days, credit freezes, contacting the post office, DMV, social security office, banks, etc. It can be quite frustrating to say the least.
If you bothered to read on you would have also seen that we
offer ID theft insurance free with your membership! It is only $1295 if you're already a victim and did not have ID Theft insurance to begin with.
Good luck, sounds like you'll need it.
Noie
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