Your personal financial information can’t be completely protected.
With the already immeasurable list of data breaches that seems to grow longer by the day, maybe we should be praying not for protection but for better interventions. Witness the recent news involving the Federal Trade Commission and LifeLock Inc.
The FTC has filed charges alleging that LifeLock violated a 2010 settlement in which the company vowed to stop making deceptive claims about its services and implement stronger measures to safeguard its own customers’ personal data, including credit card, Social Security and bank account numbers.
The case should serve as a reminder that identity-theft services are limited in what they can do and still can leave you exposed. Here’s how:
The claim: In its advertising, LifeLock says it “uses advanced technology to constantly monitor over a trillion data points to help detect suspicious uses of your identity information to get loans, credit and services in your name.”
The caveat: Let’s say that with all of its super-duper detection, LifeLock discovers that your information has been compromised. This means the data is already out there and perhaps being sold. Oh, and by the way, in those ads, and in smaller print than the protection claim, is this disclosure: “Network does not cover all transactions.”
The claim: “At the center of all LifeLock services is the patented LifeLock Identity Alert system. Actionable alerts are sent in near real time as soon as LifeLock detects your Social Security number, name, address or date of birth in applications for credit and services within our extensive network. You can choose alerts by text, phone or email.”
The caveat: Again, alerts only come after the fact.
The claim: Identity-theft services may offer alerts of activity on your accounts.
The caveat: You’re paying for something you can do yourself. With so many data breaches, most financial institutions now allow you to sign up for free alerts.
The claim: You’ll get your alerts lickety-split.
The caveat: You may not get alerted quickly.
As the FTC noted, even when you put a fraud alert on your credit files, creditors could overlook such notices. And many institutions simply don’t have sufficient protections within their systems to thwart identity thieves.
Contact Michelle Singletary at michelle.singletary@washpost.com or c/o The Washington Post, 1150 15th St. NW, Washington, DC 20071.
