Absolutely Not, Here’s Why…
To say it’s been a bad few months for the identity protection service Lifelock is like saying Tiger Woods is having relationship trouble. In March of this year, the Federal Trade Commission ruled against Lifelock in a suit brought by no less than 35 state attorneys. The commission announced that it levied a fine of $12 million against the company for deceptive business practices. Basically the government made the case that Lifelock was promising customers that if they signed up with their service, their personal information would become useless to thieves.
Lifelock of course denied these allegations and claimed they never misled customers into believing any service much less theirs could completely protect consumers 100%. Nonetheless the judge ruled and Lifelock was fined.
Then in May a few months later, the Phoenix New Times broke a story revealing Lifelock’s CEO, Todd Davis has been a victim of identity theft no less than 13 times. Todd Davis spearheaded Lifelock’s bold marketing by publicly challenging identity thieves to steal his social security number by plastering it over billboards, radio advertisements and the internet.
The rub is that Todd Davis claims he could be so daring because of Lifelock’s protection. This is like Jenny Craig selling her diet program as she continues to gain weight. I’m no marketing guru but I don’t think this is most effective method to sell something.
Having The $12 Million To Pay
Back in the 80s, there was a famous bond trader by the name of Michael Milken. In 1990, he pleaded guilty to multiple felony charges that he violated US securities laws. I’ll never forget as part of his plea, Milken agreed to pay $200 Million in fines. Back then, this was an unheard of amount but Mr. Milken paid it on the spot and served two years in prison. I kept asking myself at the time, “How much money did he make that he could pay a $200 million fine like it was paying a $20 parking ticket?”
Lifelock may have been fined $12 Million for their overly aggressive marketing but they basically created an industry where none existed and because of their bold marketing, they’ve become the market leaders in that industry by a wide margin. None of this would have been likely if they took a more conventional approach.
Sure Lifelock had to pay $12 million but their “deceptive business practices” earned them at least $12 million and places them as the market leader in a billion dollar industry.
But Does It Work?
Only 13 times. Todd Davis blasts his social security number all over print media, the radio, television, and the internet and he’s been victimized only 13 times? None of the amounts are over a thousand and Lifelock was able to resolve all the instances.
You don’t buy Identity theft protection to make yourself invisible to identity thieves, that’s just not possible in today’s world. But identity theft services like Lifelock can drastically reduce the likelihood you’ll become a victim and more importantly, they provide you resolution experts to help you recover should the unthinkable happen.
For more information on Lifelock and how they protect you read our detailed Lifelock review.