The year 2009 is proving to be an eye opener for everyone in America, since there were few days that went by it which we didn’t learn about all of the crooks running corporate America. The company Lifelock which promises in their TV commercials to protect the consumer against ID theft and promises to pay you any damages that they occur if your ID is stolen, has been stealing themselves. According to one source the company has been fined by the FTC for deceptive advertising and paid a $12m fine.

The fines will be reimbursed to about one million customers who signed up for the service starting in 2005. But if one takes the $12m fine divided by one million customers, that amounts to $12 each. According to one article it also stated that:

In one ad, the firm said it could make consumers’ personal information “useless to a criminal.”

“Consumers received far less protection than they were promised,” Leibowitz said.  For example, Lifelock was useless against identity theft involving existing credit cards or bank accounts, he said.

The firm also collected extensive personal information from consumers when they registered, and promised to keep that data safe. The FTC says LifeLock failed to do so. In its complaint, the FTC says the firm:

* Did not encrypt data, but stored and transmitted it in clear text.

* Failed to require employees to use hard-to-guess passwords.

* Did not install patches and critical updates.

* Did not plan for common vulnerabilities to their network, including SQL injection attacks.

* Did not install antivirus software on employee computers.

* Allowed faxes with personal information to be available in open office area.

It is amazing that the company didn’t list the personal information online! LOL This is just another example of how corporate America just loves to screw the consumer and profit by promising something that was not delivered.

Comments welcome.

Source is here.