Identity Theft and Identity Fraud Protection

Identity Theft Labs was created to help you choose the identity theft protection service that is right for you. We have researched and tested many services and concluded that the best identity protection companies are LifeLock, LoudSiren and TrustedID. Compare them!

Identity theft becomes a concern for approximately 3.5 million Americans who had their personal and confidential information compromised in one of Aprils twenty-seven data breaches. This continues a monthly trend of data breaches over the last few years that routinely puts over 50 million Americans at risk each year and contributes heavily to the resulting 10 million yearly identity theft victims. Though the problem of identity theft has received quite a bit of exposure lately those who we entrust with our personal records have been slow to respond to the threat. Thankfully, individuals have been much quicker to act as word of mouth spreads the horrific experiences of identity theft victims. Individuals have also reacted favorably to the power given to them by Congress to place a fraud alert on their credit file and in doing so have abandoned credit monitoring which only recently was our chosen method of identity protection. Identity theft protection companies like Lifelock and LoudSiren Debix have capitalized on the demand for fraud alerts by placing and renewing the alerts on behalf of consumers and bundling that offering with other services. These companies are growing fast and have begun to utilize main stream advertising giving more exposure to the problem and educating consumers about the options they now have to combat identity theft and the services they offer to protect their credit and good names. Individuals are doing their part to reduce the devastating impact this crime is having on our great county but as you can see from the list that follows our institutions and companies have a long way to go. This list is a brief sampling of Aprils breaches from http://attrition.org/dataloss/#2008 where you can find the full list and links to the whole story.

• University of Colorado at Boulder
  Names, addresses, and Social Security numbers of about 9,500 on compromised server.
• CollegeInvest
  Lost hard drive exposes 200,000 customers during office relocation.
• Boots Dental Plan
  Account details of 34,000 stolen from courier.
• LendingTree
  Social Security numbers, names, addresses, and other personal information inappropriately accessed.
• Central Collection Bureau
  Social Security numbers and names of 700,000 on stolen server.
• University of Miami
  Stolen tapes containing names, addresses, and medical records of 2.1 million patients.
• Connecticut State University System / Buffalo State / Northwest Missouri State University
  Stolen laptop contains names and Social Security numbers of 20,500 students.
• University of Virginia
  Social Security numbers and names of over 7,000 on stolen laptop.
• University of Toledo
  Name, address, and Social Security numbers for 6,488 exposed on internal server.
• New York-Presbyterian Hospital/Weill Cornell Medical Center
  Names, phone numbers and some Social Security numbers of 40,000 stolen by employee.
• Wellcare
  71,000 insurance records including Social Security numbers exposed on internet.
• WellPoint
  Social Security numbers and medical information for about 128,000 exposed on internet.
• Okemo Mountain Resort
  Computer network breach exposes tens of thousands of credit card transactions.

It is a good thing that individual Americans have taken identity theft seriously and have begun to protect themselves because the number and scale of data breaches does not seem to be going down. Individuals are taking a much bigger bite out of this crime then corporate America by protecting themselves and their families with fraud alerts. Hopefully corporate America will get on the ball and start protecting our information. Do they need a bigger reason than the estimated 50 billion dollars that identity theft is costing our economy each year. I don’t think so. Identity theft may always exist but lets not make it easy for the criminals. Far to many personal records are lost each month needlessly and the time has come for corporate America to become the responsible citizens that they should be. This may not alleviate the need for individuals to have identity protection in place but it will give a strong boost to our economy and save millions of Americans from the pain, frustration, loss of time and financial loss that identity theft brings to their lives. Learn more about the identity theft protection services of Lifelock or LoudSiren before you too experience this debilitating crime.

LifeLock is adding two new identity theft protection services to their already strong lineup. The first is called eRecon and it is a high tech program that regularly scours the internet looking for compromised private records of LifeLock customers. During eRecons patrols of the internet it will be looking for information such as social security numbers, credit card numbers, driver’s license numbers and email addresses of LifeLock members to stop this personal information from being illegally sold or traded online. As we have informed you previously there are many illegal markets online where this information is routinely sold and by routinely we mean this information is sold every minute of every day. The MSNBC Dateline video highlights this and shows how easily a credit card number can be bought and how quickly it can be compromised. ERecon is not going to stop all attacks on members identities but it will reduce the number of attacks, provide a trace of the compromised information for concerned parties such as yourself or law enforcement, and furthermore it will alert you if identity thieves are buying and selling you private records. This is a very important addition for LifeLock because a fraud alert and total service guarantee only protects you financially and a drivers license for example may be sold for the purpose of obtaining fake identification and impersonating you upon arrest. Criminals, especially wanted criminals, often carry the ID of a “clean person” so that they don’t take the fall for their own illegal activities. Though this is not nearly as common as financial identity theft it is becoming more common in the criminal underground every year and it is in our opinion only a matter of time before a criminal decides to take the extra step and go from using you and your good name as arrest protection to stealing your identity with the purpose of accessing your money and destroying your credit. Anything that can prevent your personal information from getting in to the wrong hands is obviously a good thing and eRecon will do this more efficiently and accurately than we could ever do ourselves.

The second addition to LifeLock’s identity protection service is called TrueAddress. TrueAddress searches to see if members have had a change of address form filed with the United States Postal Service and alerts them if there has been any changes. This is also a very important tool to combat identity theft. It is well known that identity thieves often file a change of address with the Post Office so that they can obtain information they need on their soon to be victims. The smart ones only do this for a few days to not draw any suspicion and then resume service back to your residence. TrueAddress would inform you of this change alerting you to the potential attack. This service is especially valuable to those who travel for long periods of time and would otherwise be unaware that their mail had been diverted.

The addition of TrueAddress and eRecon has really strengthened LifeLock’s offer and once again sets them apart from their competition. Others, such as TrustedID, have offered services similar to eRecon but TrueAddress is a unique service that is found only at LifeLock. Identity theft has taken a huge bite out of the American economy and out of millions of Americans personal lives. It is about time that we have started to take a few bites out of identity theft. LifeLock has led the charge in the identity theft protection industry from the beginning and they continue to live up to their reputation as the market leader. We hope that the LoudSiren Debix team and other identity protection companies will follow suit but for now we believe that LifeLock has the edge on all of them. For those people who are still sitting on the fence wondering if they should protect themselves with an identity protection service we think the choice has become clear. The best part is that Life Lock had added these services at no additional cost. If you use our LifeLock promotion code you will pay only $99 per year for an adult ($22.50 per child) and this rate is guaranteed every year you remain a member. That’s a 10% savings every year plus you will get your first 30 days free. This is the best LifeLock discount available. So what are you waiting for, learn more about LifeLock’s identity protection service now.

The LoudSiren Debix Identity Protection Network has added another beneficial feature to their offering and it is one we are very happy about. As an addition to their leading edge and patent pending fraud alert technology system Debix has implemented an Incident Response Specialist to act immediately upon the notice of a fraudulent credit application as a coordinator between you the lending institution and law enforcement. This is how the LoudSiren Debix system works.

1. You enroll in their services and pay them $99/year or $89 by using our LoudSiren discount.

2. You give a quick recording of your voice, give up to three phone numbers you can be contacted at and choose a personal identification number (PIN) as you would for a bank card. (explained later)

3. LoudSiren Debix will set your fraud alerts at all three credit bureaus and place their phone number (explained later), not yours, in your credit file. LoudSiren ensures that the fraud alert is set correctly and in the event it is not, or a lending institution fails to follow their legal requirement to call you or verify your identity, you are protected by their $25,000 insurance policy and 1 million dollar guarantee. Please note: A study by Debix in August 2006 showed that 40% of fraud alerts placed by consumers on their own were not set properly at all three bureaus.

4. LoudSiren will remove you from pre-approved credit offers, junk mail and unwanted telemarketing lists in addition to your yearly 3 bureau credit report. Note: Removal from the National Do Not Call List is optional.

5. You apply for credit so the loan officer or car salesman pulls your credit file from one of the bureaus and notices it has been flagged with a fraud alert requiring him to verify the identity of the person he is dealing with by calling the phone number in your credit file. This will be the LoudSiren Debix Safe phone number that they placed in your file on your behalf. When the loan officer calls that number it will automatically ring all three of your phone numbers (usually home, work and cell phone). You answer and will hear your own voice recording so you know this is a legitimate call. You will then hear the requested credit application and you simply enter your PIN and approve the transaction.

6. An identity thief applies for credit and as above you get a call and hear your voice but this time, since you know it is a credit fraud attempt, you simply hit the star button to decline the credit request and you are immediately connected to an Incident Response Specialist in Austin, Texas from Debix. They will investigate the attack instantly and will work with the lender in addition to engaging law enforcement when appropriate. Note: We absolutely love this feature as it can put the predator who was attempting to use your private information right where he belongs. Behind bars.

Without a doubt this is the best fraud alert system available giving the LoudSiren Debix team many advantages over other identity theft protection companies. These advantages are:

• They keep your cell phone number out of the hands of the credit bureaus and all creditors by giving them the LoudSiren Debix Safe phone number. Since you will recognize the Safe Number it also ensures you don’t miss a call from a creditor phone number you don’t recognize.
• Since you will hear your pre-recorded voice you will know if any call asking you to provide authorization for credit is legitimate and not a phone scam.
• The LoudSiren Debix system has an extra level of security due to a PIN that must be entered to approve credit.
• All calls to the LoudSiren Safenumber are automatically forwarded to three phone numbers and if you don’t answer you are informed by voice mail and email of a pending request. This not only gives you instant credit when you want it but also avoids any phone tag between you and a creditor.
• There is an audit trail of all calls placed to you which can prove very useful in a dispute resolution.
• In an identity theft attempt an incident response specialist is there with you from the beginning when you need them most. They will contact the lender ensuring that they know the application is fraudulent and find out if the identity thief is present. They will involve the appropriate law enforcement agency depending on the location of the attempted fraud and the nature of the case.

We love the addition of an incident response specialist and believe it will not only catch criminals red handed but more importantly will deter them from committing the crime in the first place as the risk of getting caught increases dramatically.

Fraud alerts are the single best weapon we have against identity theft and the system employed by the Loudsiren Debix team is the best fraud alert system on the market. It may not be for everyone as some people prefer to receive a phone call directly from the lender but we believe the advantages of their system is significant. When you combine this with a stellar reputation in the identity theft protection industry and add $25,000 worth of insurance and a $1,000,000 guarantee you know you have a winner. This is why states and cities who have experienced large data breaches hired Debix to protect the identity of their affected residents and this is why we gave the Loudsiren Debix team our highest rating. If you are worried at all about identity theft, and we believe every American should be, then we suggest you put your mind at ease by protecting your reputation, good name, hard earned money and future credit opportunities. Enroll in the LoudSiren Identity Protection Network today and help take a bite out of this devastating crime.

Identity thieves have stolen the tax returns of 93 University of California, Irvine (UCI) students and up to 7,ooo students are at risk according to the Orange County Register. The identity theft ring was detected when several UCI students reported to campus police that their tax returns came back “already processed”. Now that has got to be an alarming and scary feeling to receive that notice from the IRS. UCI police are investigating but have not found the source of the leak. They believe the compromised data only affects graduate students who attended between 2004 and 2007. The State of California has since banned the use of Social Security Numbers as student identification.

Details of this particular crime remain sketchy though it is known that IRS investigators have become involved. It certainly appears that this is more than just one hacker, or one bad employee and that it likely has ties to an identity theft ring. Students are encouraged to process their returns immediately as that is the only way to know that their personal information has been used fraudulently with the IRS. Unfortunately, as with any data breach, the attack can happen tomorrow or 20 yeas later and can take many different forms. There are many steps one can take to protect their identity and their are many identity protection options that can be purchased through credit bureaus, insurance companies and identity protection companies such as Lifelock and Loudsiren but none of the available options could protect you from this particular crime. The best advice we can give is to file your return immediately if you haven’t already, keep your information up to date with the IRS and file your tax returns in the following years as early as possible. This is sound advice for anyone who has experienced a breach of their private records as the IRS does not check your credit report when authorizing your return and therefore will not be alerted by a fraud alert. Additionally, you should not give out your personal information to the IRS on the phone or by responding to an email. These are common scams.

To protect yourself from other forms of identity theft we strongly recommend that you place fraud alerts on your credit file and renew them every 90 days and order and examine your free annual credit report yearly. The good news for those students on a budget is that this can all be done for free. If you are barely making ends meet and living off Kraft Dinner (ah, those were the days) then you probably don’t need to be concerned with insurance or a guarantee that an identity protection service would provide. So take the initiative and protect your good name and credit today. If you don’t have the time, want the insurance or wont remember to renew your fraud alerts then consider utilizing a company like Lifelock, Loudsiren Debix, or TrustedId. They will take those necessary steps, give you insurance and/or a service guarantee and remove you from pre-approved credit card offers and junk mail lists as well. Each service also has other value added options that may interest you. There are other less effective options such as credit monitoring, or more restrictive options such as credit freezes that are available for a fee as well. The only decision you will truly regret is the decision to do nothing. As we have mentioned many times we strongly recommend fraud alerts but we do realize that this is not the right choice for everybody. What is most important is that you do something because any action that reduces your chances of becoming an identity theft victim is a good action to take. What are you waiting for? Protect yourself now!

Identity Theft continues to garner media attention, and rightfully so as new identity theft victims are added to the alarming totals daily, but little is actually done to stop a major root cause, the ineffective security of our confidential information. Citizens have heeded the call to protect themselves and have begun to shred documents, monitor their credit, protect their computers and enroll in identity theft protection services like LifeLock and LoudSiren but the message from the media, law enforcement and Governments doesn’t seem to be getting through to those who are entrusted with the personal records of many. If the first quarter of 2008 is any indication then Americans should be prepared for the worst when it comes to identity theft because our personal and private records continue to be compromised at rates that will soon lead to the exposure of every single American. We have already documented many of the breaches from the first two months of the year so here is a quick summary from March which saw the exposure of 5.5 million Americans in 24 separate incidents.

• A Hacker obtained personal information on 10,000 students and applicants at Harvard University. 6,600 Social Security numbers (SSN’s) were included in this breach.
• Agilent Technologies lost the Social Security numbers, names, and financial information of 51,000 clients when a laptop was stolen.
• SSN’s, names, academic records and payroll documents of 70,000 employees at Antioch University were lost when a computer system was hacked.
• The Dental Network compromised the names, addresses, dates of birth and Social Security numbers of 75,000 members when they posted their details on a web site
• Software placed on servers at Hannaford illegally captured the credit card and debit card numbers of 4.2 million customers
• At Lasell College the names and Social Security numbers of 20,000 students, faculty, staff and alumni were accessed by a hacker
• A high school student in Broward County School District in Florida hacked a computer and compromised the names, addresses, phone numbers and SSN’s of over 38,000 employees
• A stolen laptop from University Health Care in Utah contained the names, Social Security numbers, and health information on 4,800 patients
• The names and Social Security numbers of 5,000 MTV Networks employees were exposed via a computer
• An employee stole a hard drive hard drive containing the records of 1,000,000 Compass Bank customers in Alabama. Though this incident happened in 2007 it was not reported till March 2008 as Alabama is one of 11 states that have not passed a law requiring the notification of citizens affected by a breach. According to Computer World the now convicted employee, with the help of his accomplice who was a teller, made 245 fake debit cards and proceeded to withdraw over $32,000 directly from bank accounts at ATM’s. Fortunately these in-experienced identity thieves failed to get money on 90% of their attempted withdrawals and drew the attention of an alert police officer resulting in their capture and conviction. The hard drive thief received a 42 month sentence while the teller who provided the hardware to encrypt the debit cards received an 18 month sentence that was later reduced to 1 month.
• A missing laptop at Blue Cross Blue Shield of Western New York compromised the confidential records of an estimated 40,000 members.
• A computer virus at Cascade Healthcare Community exposed names, addresses and credit card information of more than 11,500 Americans.
• Lost backup tapes at BNY Mellon Shareowner Services compromised the names, Social Security numbers and possibly banking information of 3,500 clients.
• A “missing laptop” at Kraft Foods contains the names and possibly Social Security numbers of 20,000 employees.

Identity theft protection is now a necessary task that every American should consider implementing immediately. Even though 37 states have passed laws requiring affected citizens to be informed of any breach of their information the rate of data breaches has not slowed. It has gotten to the point where you have to assume that your confidential information has been exposed and it is up to you to take steps to protect your identity, your credit and your finances from identity fraud. Identity Theft Labs highly recommends the placing of fraud alerts with all three credit bureaus in addition to other identity protection measures you may have initiated. You can do this for free if you are willing to do some initial legwork and are responsible enough to renew the fraud alert every 90 days. You will be giving up the value added services and financial insurance or service guarantee that an identity theft protection company provides but at least you will be getting the protection you deserve at a price that can’t be beat. For those who want the additional benefits, or don’t want the aggravation of renewing those fraud alerts we highly recommend you visit LifeLock, TrustedID or the LoudSiren Debix team as we have identified them as the leaders in identity theft protection. Remember that the most important thing is not how you choose to protect yourself but that you do in fact take some action towards protecting yourself and your loved ones from this potentially devastating crime. Be smart, stay safe, take action now.

Fraud alerts are the best way to stop identity theft says Lifelock, an identity theft protection company that will place a fraud alert with the credit bureaus on your behalf. This headline was heard often during LifeLocks recent campaign, Strike Back - Defeat Identity Theft Now, and though the bias is apparent, as a fraud alert is central to LifeLock’s business model, we strongly agree. Our previous article addressed many of the issues raised during LifeLock’s campaign and this article will address the remaining issues which all have to do with empowering consumers to take control of their credit. We will present each remaining issue and LifeLock’s comments followed by our own thoughts and opinions. Lets get started.

1. National acceptance of fraud alerts
   
   LifeLock.com

   Widespread acceptance and stronger enforcement of fraud alerts by financial institutions is a must to support consumers who want protection without being limited access to what is rightly theirs. At no time should a fraud alert on a credit report be ignored.

   Identity Theft Labs
   
   Absolutely right. Congress gave us the right to place fraud alerts but there needs to be greater acceptance of them across the board. It is steadily improving but we still believe there should be enforceable penalties for those who don’t comply with the FACT Act. By adding extra teeth to a very successful identity theft prevention tool consumers will be able to control their own credit file. This is the power of a fraud alert. It does not restrict our access at all yet prevents others from accessing our credit file unless we give our verbal approval.

2. National credit registry
   
   LifeLock.com

   While the majority of financial institutions, credit card companies, merchants and employers use the three major credit bureaus as the standard for checking credit or verifying an identity, there are still companies that use their own form of credit verification, and such, weakening the current levels of protection available to consumers. Medical identity theft is on the increase because hospitals currently don’t have a system in place to validate identification.

   Identity Theft Labs
   
   Another very important point brought forth by LifeLock. A National mandatory credit verification would greatly reduce identity theft and credit fraud. Financial identity theft would see the greatest decrease and yes it would help with other types of identity theft but we do not believe that this should be the sole system to address medical identity theft. Medical identity theft needs to be dealt with by a new system of validation such as a photo health card. A National Registry could take care of the credit approval process and would certainly help prevent credit fraud, we just don’t think this should be our only solution.

3. Verbal authorization for all
   
   LifeLock.com

   Over the past three years, identity theft companies have sprung up everywhere with offers to fix credit reports, offers to monitor credit cards and guarantees worth millions. However, few have offered consumers an actual voice in protecting their identities. Verbal authorization, as used with fraud alerts, is the only form of protection where a consumer actually gets to approve or disapprove any transactions that affect their credit report. Without a verbal okay and correct answers to security questions, transactions would not go through.

   Identity Theft Labs
   
   Absolutely right. Giving the consumer control over his or her credit is the best type of identity theft protection. Americans deserve to have this right and it is easily the best solution for preventing identity theft while allowing credit to be granted seamlessly.

4. Take control
   
   LifeLock.com

   Since the day you were assigned a social security number it has been listed, posted and sold many, many times. It’s time to stop allowing everyone access to your life and take control. Take control of your personal information. Take control of your credit reports. Take control of what people can find out about you. Make your personal information useless to criminals and they will go looking for easier targets.

   Identity Theft Labs
   
   Unfortunately, as LifeLock pointed out earlier, 225 million Americans had their information compromised in the last three years and an alarming number of records continue to be lost daily. Most of these records contain social security numbers which, in our opinion, would have to be scrapped in favor of a new National ID if we are to gain complete control over our personal information. For now we need control over our finances and our credit and the authorization required by fraud alerts is a great start.

Identity theft is an issue that needs the attention of the country and LifeLock took a very important step that hopefully will be continued by individual Americans. There is no other crime of the magnitude of identity theft that can be prevented so easily. We have to let our politicians now that we want control of our own credit and that we expect verbal authorization. The desire for this authorization is evidenced by the number of people who have already placed fraud alerts. Now we need legislation that makes this permanent and takes in to consideration all the other issues raised by Lifelock such as legislation with provisions for accountability and enforceable penalties. Identity theft will always be present but we can certainly make it a remote threat that affects very few people, all we have to do is let our voices be heard. We have to demand the empowerment we need to take complete control of our own credit. In the meantime you can enjoy the peace of mind provided by LifeLock’s guarantee while simultaneously taking control of your credit. Just enroll at Lifelock.com and they will place fraud alerts on your credit file that will make YOU the only person who can authorize credit applications in your name. What a novel idea!

LifeLock’s grassroots campaign, Strike Back - Defeat Identity Theft Now, came to an end in Washington, D.C. on March 6, 2008 with the handing over of a petition that was collected along the tour and at their website www.LifeLock.com. The campaign and petition was designed to bring awareness to the crime of identity theft and in particular asked for 8 issues to be addressed by our political leaders. Identity Theft Labs decided to weigh in on the issues brought forth by Life Lock and on their comments that were published at Lifelock.com. Here is part 1 which addresses the first four issues.

1. Limit the use of the social security number
   
   LifeLock

   A law should be passed that would cut back on social security number usage. Though companies and organizations have started changing to ID numbers, the social security number is still part of many current and past records. These numbers must be minimally used and strongly protected.

   Identity Theft Labs
   
   We agree but want to point out that though this seems very simple it is actually a complex issue that will be difficult to implement and enforce. In fact with the amount of social security numbers exposed already it may be a better solution to implement a new National ID to replace the old SSN. We advocate for the research and debate of both options.

2. Stronger federal standards for lost or stolen data
   
   LifeLock.com

   The Data Accountability and Trust Act needs to be revised, making companies and financial institutions more accountable. Currently there is no reporting law for all 50 states. In other words, if a company or organization loses your information, they may not have to tell you about it, depending on where you live. Since January 2005, more than 225 million Americans have received notification that their personal information has been lost or stolen (more than 80,000 people a day). What would this number be if everyone who lost information had to report it?

   Identity Theft Labs
   
   Excellent point and one we have made before as well. First we need national reporting legislation, people need to be informed when their private records are compromised. After this it is important to pass legislation requiring anyone holding consumers sensitive information to adhere to minimal security protocols, procedures and regulations in regards to the acquisition, retention, distribution and storage of this personal data. Those that fail to meet minimal standards need to be held accountable.

3. Impose prison sentences
   
   LifeLock

   A recent survey showed that 1 in 700 criminals never get prosecuted for this crime. Criminals know that this is a low-risk, high-reward crime, so why stop doing it? Law enforcement is doing the best it can to keep up with the growing number of complaints, but when criminals get handed probation after their arrest, they just go back to doing it again. Tougher sentences are needed to send a message that stealing personal information is the same as stealing a car, breaking into a house or robbing a bank.

   Identity Theft Labs
   
   Headway has been made in this area but so much work needs to be done. Increased prison sentences is a deterrent but we also need to train our officers on identity theft so that they can effectively deal with this epidemic.

4. Credit bureaus need to be user friendly
   
   LifeLock.com

   Anyone who has ever tried to fix a problem with a credit report will understand why it needs to be an easier task. If you have been a victim of identity theft, all fraudulent accounts should be cleared on that report immediately. Someone who is or has been a victim of identity theft should not have to pay penalties or pay for losses financially or reputably.

   Identity Theft Labs
   
   We agree, clearing your credit report should not be the daunting task it currently is with the credit bureaus. Unfortunately it is not in the bureaus best interest to have your report cleared expeditiously and it is difficult for them to sort out the facts from the potential fraud. A completed investigation by an authorized authority that states a person was a victim of identity theft should mean the immediate clearing of their credit report. A simple identity theft report should flag the credit report and not negatively affect a credit score.

Each is an important issue, and though some need research and debate as we pointed out, others only need legislation that will hold people, companies and institutions accountable for their actions or lack thereof. Identity theft can be a devastating experience to the individual and their families and it is costing our economy so much that it is hurting all Americans. Our legislation has to protect individuals, deter criminals, hold the appropriate parties accountable and soften the blow experienced by identity theft victims. To do this we need to bring identity theft to the forefront of the American conscience and LifeLock took an important step in this regard. We will examine the other issues raised by LifeLock shortly but hope for now that we have given you something to think about, discuss and recommend to your elected officials.

Learn more at LifeLock.com, read our LifeLock Review or see what LifeLock’s identity theft protection services can do for you on our handy chart.

Lifelock continued to make headlines with both good and not so good news. In an effort to raise awareness on identity theft Lifelock launched a grassroots marketing campaign titled “Strike Back - Defeat Identity Theft Now”. The campaign trail, which features LifeLock CEO Todd Davis, started February 24 in Miami, Florida and continues with stops in 14 other cities until it comes to a head on March 6 in Washington, DC . Lifelock hopes to show legislators the need to address the following issues:

• Limit the use of the social security number
• Stronger federal standards for lost or stolen data
• Impose prison sentences
• Credit bureaus need to be user friendly
• National acceptance of fraud alerts
• National credit registry
• Verbal authorization for all
• Take control

The campaign has been a success already with Arizona, Nevada and Georgia declaring March 2-8, 2008 identity theft awareness week. Just as this tour was generating positive public relations for Lifelock a lawsuit launched by Experian against them stole a great deal of the thunder. Though we believe the lawsuit is baseless and merely an attempt by Experian to cut a favorable deal with LifeLock it still raised some concerns regarding the budding identity protection company.

Data breaches showed no signs of slowing down in February highlighting the need for better legislation as Lifelock proposed. With 19 reported data breaches including large ones at Lifeblood (321,000) and Health Net Federal Services (103,000) over 560,000 Americans had private records compromised. According to Attrition.org who maintains the Data Loss Archive and Database, three companies (MLSgear.com, Lexmark International and First Magnus Financial) did not release the number of people exposed in the breach and are not included in the total.

A new study by Berkeley Law School fellow Chris Hoofnagle, titled Measuring Identity Theft at Top Banks, reports that the companies with the most incidents of identity theft per billions of dollars of deposits are Bank of America, HSBC, and Washington Mutual.Companies with the most identity theft complaints were Bank of America, AT&T, Sprint, Chase, Capital One and Citibank. Information was gathered from 88,000 complaints filed by Americans to the Federal Trade Commission in January, March and September 2006. Wired.com reports that Hoofnagle stated in his report some reasons for doing the study.

“In order for the market to effectively address the ongoing identity theft epidemic, consumers need reliable information about incidence of the crime among institutions,” and “If data were available on this crime, consumers could choose safer institutions, regulators could focus attention on problem actors, and businesses themselves could compete to protect consumers from this crime.”

We couldn’t agree more. The data collected from the FTC only includes complaints to them. Police reports and reports of identity theft to Banks, credit bureaus or other companies is not included unless the FTC receives what is usually a consumer complaint. Consumers need to be made aware of the biggest offenders and as Lifelock has requested there needs to be stronger federal standards in regards to the loss or theft of our personal information. It is no wonder why identity protection companies like Lifelock, or their main competitor the LoudSiren Debix Identity Protection Network, acquired the bulk of their customers in 2007 and are on pace for even more growth in 2008. Until we get our act together identity protection services will continue to be in hot demand.

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LifeLock has been sued by Experian a London, England based corporation who is one of the big three American credit bureaus. Experian is alleging that the service provided by LifeLock violates the Fair and Accurate Credit Transactions (FACT) Act passed by Congress in 2003. The FACT Act states a fraud alert can be placed

“by a consumer, or an individual acting on behalf of or as a personal representative of a consumer, who asserts in good faith a suspicion that the consumer has been or is about to become a victim of identity theft.”

Experian is alleging that LifeLock’s Identity Theft Protection Service has no right to place fraud alerts on behalf of consumers as they are not an individual. Furthermore, they allege that Life Locks perpetual renewing of the fraud alert and in some cases their initial placing of the fraud alert violates the condition that a reasonable suspicion of being or becoming an identity theft victim must exist. We believe that 210 million exposed personal records in the last three years and over 20 million identity theft victims gives every American a reasonable suspicion. LifeLock CEO Todd Davis called the lawsuit baseless and felt that Experian was reacting to Lifelock’s success in penetrating their market and challenging their business model. Experian also points out in the lawsuit that fraud alerts only protect you from financial identity theft and don’t do anything to protect you from other types such as employment fraud. Do they not realize that people know this and that the fact someone is already using your SSN for employment gives you another reason to believe you might become a victim of financial fraud. Also the part about a perpetual renewal being illegal is nonsense, how can anyone know that they are going to become an identity theft victim within 90 days or not at all. The fact of the matter is that fraud alerts prevent credit bureaus from providing open access to your credit information and limits their ability to sell your information which is one of their main sources of income. This lawsuit is all about money and Experian would be the last company looking out for consumer interests.

Like a typical lawsuit Experian alleges everything else under the sun including misleading advertising and that LifeLock is not open about the fact that fraud alerts can be placed for free at any of the credit bureaus. Besides Identity Theft Labs, LifeLock.com is one of the only websites we know of that actually does say that you can place fraud alerts for free. We also found the misleading advertising accusation comical since it comes from a company who was mandated by Congress to provide free credit reports in an open manner and yet they own and run a website at www.freecreditreport.com that competes with the legitimate website www.annualcreditrepot.com. They advertised on the radio, T.V. and in newspapers not the legitimate site but their competing one. Their competing website then illegally enrolled consumers automatically in to a $80.00 credit monitoring package. Eventually the FTC put an end to this practice and charges were settled with Experian paying $950,000. Speaking of the FTC it is important to note that they have not said anything about the placing of fraud alerts by LifeLock, or any other identity prevention company, even though it falls within their mandate to do so.

Another interesting point is that Experian sued LifeLock but none of the other identity theft protection companies. LoudSiren, Debix, TrustedID, Identity Guard and about a half dozen other companies all provide the same fraud alerts on behalf of consumers. Do they have separate deals with Experian or is Experian just targeting the market leader and hoping the other identity protection companies will fall in line. We believe it is the latter. Experian hopes to use the LifeLock lawsuit to cut a deal and receive compensation for their role in placing fraud alerts. They will then use that deal as the basis for future deals with LoudSiren, Debix, TrustedId and the rest. Even if Experian were to win a legal battle against LifeLock it is likely the Government will step in and allow them to continue placing fraud alerts because consumers are demanding that this service be allowed. The old draconian days of the credit bureaus having complete control over our information is over. The Fact Act was passed because Congressman realized that the old system did not work and that identity theft had become to big a concern to ignore. They put some power back in consumers hands, giving us some measure of control over our credit and personal information, and regardless of how we execute this control, whether it be by ourselves or through an identity protection service, it will be difficult to take this away. Over one million Americans are already enrolled in identity protection plans provided by LifeLock and their competitors, and at least another million will enroll before a lawsuit is settled, so it is very unlikely that Congress would go against the wishes of that many voters. We advise consumers to protect their identity and credit using whatever means and/or service they prefer and to leave the legal posturing to the lawyers. Furthermore, we invite you to visit LifeLock.com to verify how open they are about the services they provide to consumers.

LifeLock and Avue Technologies held a press conference yesterday to announce a joint venture that could provide identity theft protection to a couple hundred thousand federal employees. Avue will purchase identity theft protection from LifeLock.com for all eligible full-time federal employees who wish to enroll. To be eligible the employee must work for a federal agency that has a contract with Avue who is a premier government human resource and software supplier. Federal Government Agencies will reduce their identity theft liability in the event of a breach as many employees will have their credit and name protected by LifeLock and their one million dollar service guarantee. With a growing number of public sector data breaches Avue has strengthened their market appeal to federal agencies wishing to transfer their potential breach liability to LifeLock. This is a significant announcement as government agencies had previously utilized identity theft protection after a breach, but have never offered a proactive solution that would prevent identity theft. Federal employees who are eligible should immediately take advantage of this special offer from LifeLock and Avue. Employees can also buy LifeLock identity theft protection for their children and spouses for an additional charge and though the price has not been released it is expected that there will be a discount. It is not known whether the LifeLock discount will be less than the readily available promotion codes found all over the internet including right here at Identity Theft Labs. Those unfamiliar with Life Lock can learn about them, their services and how they place fraud alerts to protect consumers credit by reading our LifeLock review.

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