EARLIER THIS YEAR, news of massive data breaches of Premera and Anthem felt like a one-two punch to many of us focused on protecting consumers. I got a lot of questions from clients and other attorneys, including “What can I do to protect my identity?” and “Should I sign up for any of those ID theft guards like LifeLock?” My responses to these questions are not simple. We can learn to guard against ID theft by remaining vigilant about our credit reports, credit card statements, bank statements, and the like. Sure, if one wants to delegate this responsibility to a third-party, then be prepared for disappointment.
The story of LifeLock’s last several years is a great example of why it’s not wise to leave the security of our ID to a turn-key operator. Some are astounded to find that the company claiming to provide ID theft guard solutions to consumers and businesses have failed in some key respects according to the FTC.
Customers of ID theft-protection firm Lifelock who expected the company to monitor their identities after their data was stolen in a breach were in for a surprise. It turns out Lifelock failed to properly secure their data. Ugh.
According to a complaint filed in court in late July 2015 by the Federal Trade Commission, Lifelock has failed to adhere to a 2010 order and settlement that required the company to establish and maintain a comprehensive security program to protect sensitive personal data users entrust to the company as part of its identity-theft protection service.
Wow. What a strange twist of irony: After all, Lifelock touts its self as the solution to companies that experience data breaches and urges them to offer a complimentary Lifelock subscription to people whose data has been compromised in a breach. To properly monitor victims’ credit accounts to protect them against ID theft, Lifelock requires a wealth of sensitive data, including names and addresses, birth dates, Social Security numbers, and bank card information.
Protecting that data should be a primary concern to Lifelock, particularly in light of the fact that many of its customers have already been victims of a breach. But the FTC found in 2010 that the company had failed to provide “reasonable and appropriate security to prevent unauthorized access to personal information stored on its corporate network,” either in transit through its network, stored in a database, or transmitted over the internet.
Lifelock had been ordered to remedy that situation, but according to the complaint filed today, it has failed to do so. The complaint is currently sealed, but the previous finding from 2010 provides insight into the company’s security failures.
Lifelock’s CEO was himself a victim of data breach at least 13 times, btw. Call it karma.
NOTE: If you were/are an Amerigroup/Anthem insured in the State of Washington and received notice of a data breach, we want to talk to you. Please contact me via email at Catherine@Stritmatter.com. Participating in a class action lawsuit against a company who neglected to safeguard your personal information will not affect your ability to qualify for “free” id protection services offered by Anthem.