Judge Rules LifeLock’s Fraud Alert Service Illegal
Kim Zetter writes on Threat Level:
In a decision that has privacy advocates and others scratching their heads, a federal judge has ruled that LifeLock has been breaking California law for years by placing fraud alerts on its customer’s credit profiles.More here.
The decision is a blow to the burgeoning identify-theft protection industry, and means that companies that experience data breaches may no longer be able to offer victims free subscriptions to such services — a standard damage-control tactic in recent years. Consumers can still place fraud alerts by contacting one of the three U.S. credit reporting agencies directly.
Bo Holland, founder and CEO of Debix, a competitor of LifeLock, called the ruling “dramatic and unexpected.”
“It causes a real shift in the industry,” he told Threat Level.