Update on Lifelock-Experian Lawsuit
May 28, 2009 – 4:47 pmby Doug Pollack
It was reported today in Finextra that US judge Andrew Guilford has concluded that “Lifelock….has been employing unfair business practices by placing fraud alerts on customer credit files it maintains.”
Data breach incidents have been on the rise this year. Typically a credit monitoring offering is provided to the victims of a data breach as part of the remediation offered by the organization that experienced the breach. Rather than provide credit monitoring, Lifelock relies on setting fraud alerts with the credit bureaus as a means of offering some protection to their customers.
The Experian lawsuit claimed, and this appears to have been upheld, that Lifelock uses “unfair business practices” by setting and resetting fraud alerts every 90 days, independent of whether there is any reason to believe the individuals are at risk of identity theft.
