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Lifelock CEO Gets Identity Stolen

I got sent this link today and I actually laughed out loud when I saw it - Todd Davis (CEO of LifeLock) had his identity stolen. I completely understand and can feel for the poor CEO who probably genuinely thought that his company could protect from all forms of identity theft, but the harsh reality is it didn’t. My favorite quote from the article:

“There’s nothing to indicate my identity has been successfully compromised other than the one instance.”

Other than the one instance, that is, but it was just that once. Annnyway, the biggest problem I have is with the $1,000,000 protection they have, which, unfortunately has absolutely nothing to do with the kind of thing that Davis faced. It has to do with technology breakdowns in the system - a far less likely occurrence.

Our service guarantee is simple, but it is limited. We will pay up to $1,000,000 to cure the failure or defect in our service…

Not only that but on their site it’s highly deceptive:

What LifeLock doesn’t stop, they fix at their expense up to $1,000,000.

Nooo… what Lifelock doesn’t stop you are on your own for. It’s too bad, because I really wish this company were squeaky clean. There are so many people who actually could benefit from it. Maybe if Davis just hadn’t plastered his information all over the place…

18 Responses to “Lifelock CEO Gets Identity Stolen”

  1. James S. Huggins Says:

    My big wish is that we would stop calling it “identity theft” and instead, call it what it really is … impersonation fraud.

    See http://www.myephemerae.com/identity-theft-isnt-theft-at-all/

    James S. Huggins
    http://www.JamesSHuggins.com
    http://www.MyEphemerae.com
    http://www.EclecticPower.com

  2. Sean Says:

    LOL, I guess that’s what you get for publishing your social security number.

  3. Jon A. Longoria Says:

    Saw his rebuttal article earlier this morning, misplaced the URL. I wasn’t impressed and I think we all knew that surely it was only a matter of time before something like this happened.

    Either this fellow is naive, stupid or a highly underrated genius, the likes of which will not be appreciated in the foreseeable future until long after he is dead or his company dissolves - take your pick…

  4. CrYpTiC_MauleR Says:

    http://consumerist.com/tag/lifelock/

    “Not surprising coming from a company that was founded based on an idea one of the co-founders had while sitting in a jail cell for an unpaid $16,000 gambling debt.”

    That’s reassuring to know, sure let me give my SSN to those people so the can put a fraud alert on my credit reports for $120 a year when I can do it for free by calling a 1-800 number.

  5. Dan Weber Says:

    The article I saw had a hole-in-the-wall loan agency give some schmo $500 based on said schmo giving the Lifelock’s CEO’s SSN. Loan agency never even checked the SSN before giving out the money.

    And, really, if that’s the worst than happened to him after publishing his SSN, then it seems to be working out pretty good. They’re probably charging too much for something I can do myself, but that’s a separate issue.

  6. Paul Schmehl Says:

    $10 a month is too much to have someone else file fraud alerts every three months on your behalf? To reduce credit card offers and junk mail coming to your mailbox dramatically? If you read the article, he had one $500 loan taken out in his name from a check cashing company that didn’t even bother checking the perp’s identity. That is not identity theft in the way that most people think of it. Furthermore, the “loan” didn’t cost him a dime. Lifelock took care of it.

    I wonder how many people who scoff at this idea have ever bothered to file a fraud alert with the credit bureaus even once, much less doing it every three months.

    And why the hell do you have to renew it every three months? That seems like something the credit bureaus lobbied Congress for because fraud alerts hurt their business.

    According to Lifelock’s statistics 3% of Americans experience an identity theft incident annually. Lifelock’s customers have experienced a .01% rate. I wonder how many of Lifelock’s critics could claim a 99.67% success rate?

  7. Paul Schmehl Says:

    Um, CrYpTiC_MauleR, you might want to read the cited articles before accusing people of things. Robert Maynard spent a week in jail not because of a gambling debt but because his identity had been stolen. It was that experience that gave him the idea for Lifelock.

    http://www.phoenixnewtimes.com/2007-05-31/news/what-happened-in-vegas/

    “A few years ago, Maynard answered a knock on his door in Phoenix one morning to find five deputies holding a warrant for his arrest. They accused him of failing to pay back a $16,000 casino loan to the Mirage in Las Vegas and, despite his protests, hauled him off to the Maricopa County Jail. Maynard had not even been in Vegas when the casino made its loan. One of the guys who stole Maynard’s identity and the casino’s money is now doing time for murder. Maynard was released after seven days, but he spent more than $20,000 and countless hours on the telephone trying to clear his name. While sitting in his jail cell, he came up with the plan for LifeLock so other people could avoid being victimized by identity thieves.”

    Man, I hate it when people denigrate other people based on lies and innuendo.

    I wonder if you’ve ever bothered to make that “easy” 1-800 call? Got fraud alerts set up on your accounts right now? Are you renewing them every three months?

  8. Matt Says:

    I hadn’t ever realized that they only covered defects in their service. Their ads always implied that they covered any problems….

    Hmmm… Sounds fishy to me.

    Besides, with stories like this: http://blog.wired.com/27bstroke6/2007/06/lifelock_founde_1.html , I’ve always wondered about them.

  9. LonerVamp Says:

    That company and CEO have far bigger problems with their business practices and some looming lawsuits than with the shame of his marketing blunder. Talk about leeching off modern fears with useless services.

  10. Amy Says:

    Everyone is entitled to their own opinion, for that is what this great country was founded on.

    Yet, please consider the following:

    What if you take all of the precautions, to the best of your ability, and you find that your thouthands of hard earned dollars in your private bank account have been stolen? You call the police to file a report, and you find that the individual that took your money is protected by the law!….I was speechless, and left pennyless…..even with an attorney!

    Here are the details:

    After 22yrs. of suffering in an abusive marriage, with two great kids, and left for damaged goods (I was diagnosed with a terminal illness)…Once, both of my kids turned 18 I ran away, I simply opened a separate account on my own, and only took 1/2 of the money that was legally mine….Yet, my ex was allowed to empty my private account, for at the time he was still legally my husband…

    When the police officer stood in front of me and dismissed the situation in a very careless manner….I was shocked, upset, and felt violated and abused AGAIN!!!……..It is a feeling that I hope nobody in my situation ever has to face.

    I am writing to worn other victims out there….when you finally decide to get out, be very carefull! Until you are officially divorced, he will likely get access to your accounts, records, etc….
    YOU CAN TAKE MANY PRECAUTIONS, AND MAKE IT VERY HARD FOR HIM AND ANYONE ELSE!!!

    That is why I am thankful that the previous experiences that were quoted from the article about “Lifelock” are actually true….To me, this means that they have first hand experience of what it feels like when someone else takes your hard earn money and you are offered no help by law officers or anyone else…As sick as I am, I had to defend myself. It is very sad for anyone.

    I simply look at it as if I hire someone to clean my place. I am cautious, check them out, but also do it to have someone else add to my level of living comfort. I do not have the health to clean myself, nor can I do what they offer in Lifelock, thus I take it as an added prevention. I will still be watching, and I am still in charge of my own life….yet, with their service, I can live a little more at peace.

    It is like taking the time to lock up your home, it you leave. Anyone, that really wants in will get in. They can brake windows and enter. Yet, we have added security with alarms, neighbors, dogs, etc.

    Thank you for your previous comments, for they helped me decide. I hope that none of you are ever faced with any of these situations.
    GOOD LUCK…and take added precautions. That is all we can do some times.

  11. nellwal Says:

    To Paul Schnehl - you need to pay attention to the details, dude. If you READ all the way to the end of the article, you’ll see that not only did Mr. Maynard really try to rip off a casino for a $16,000 casino marker, he also ran a identity scam on HIS OWN DAD.

    “Maynard did, in fact, spend a week in jail in 2003 because of an unpaid $16,000 casino marker drawn from the Mirage.

    It was Maynard’s marker. The casino took a copy of his Arizona driver’s license when he took out the loan.

    There was no identity theft.”

    AND

    “American Express sued Maynard’s father in 2005 for $154,000 in unpaid bills. But Dr. Robert J. Maynard Sr., a prominent local eye doctor, denied he ordered the card.

    Records show that someone with Maynard Sr.’s personal information ordered the card. But that someone didn’t have the bills sent to Maynard Sr.’s home. Instead, the bills went to a company called Netshield, at a Phoenix address used by one of Maynard Jr.’s former firms.

    Though Maynard Sr. says he never asked for the card, he settled with the company. Coincidentally, Maynard Jr. has $170,000 in debt to American Express listed on his 2005 bankruptcy paperwork — and his father is named as a co-debtor.

    If Maynard Jr. ordered the card using his dad’s data, without his dad’s knowledge, that would make him — you got it — an identity thief.”

    Maynard and his father have not spoken in 2 years - probably since his Dad bailed him out of this mess. The guy is a major scam artist………….

    The devil is always in the details - ain’t it?

  12. pho3nix73 Says:

    Hey Paul- Is Lifelock Marketing department hiring? Do you have to have a BA in BS to get on there? Do they have a dental plan?

  13. gAzeebo Says:

    not like it wasnt bound to happen eventually

  14. LonerVamp Says:

    @Amy: That’s an unfortunate story, but I fail to see how Lifelock would have helped.

    This is more like hiring someone to check your house regularly and tell you after you’ve been robbed.

    Nonethless, you are correct, we can have our different opinions.

    For those who are with LifeLock, I’ll call and renew your damn fraud alerts every 3 months and order your free credit reports for you and send them to you. I’ll do it for $9 a month. :P

  15. Fraggeleh Says:

    “Furthermore, the “loan” didn’t cost him a dime. Lifelock took care of it.”

    Oh really?

    “Prusinski said last week that the thief was able to obtain the loan because the check-cashing operation didn’t run a credit-report check on the Social Security number before giving out the loan (which would have revealed a fraud alert on the reports) and that, as a result, there was no way that LifeLock could have prevented the theft.”

    Therefore, it’s not a defect in Lifelock’s system, thus they don’t have to pay shit to fix it. Market your snake-oil elsewhere moron.

  16. Anthony Adams Says:

    This guy, what nerve. There is a fine, and i mean fine line between genius, and insanity. Maybe the guy thought it would deter people from trying to steal his identity, by bluffing? Maybe his friend that sat in the jail cell, gave him a “good” bluffing lesson.

  17. NM Says:

    Hilarious.

  18. Slaarwalhz Says:

    lol… @ it ALL.