We’ve all heard the commercial: “Hi, I’m Todd Davis, and my Social Security # is 457-55-5462”. The first time I heard this commercial I couldn’t believe what I was hearing. Either this guy is crazy, or he really does have something going with his LifeLock® Identity Theft Product. Either way, Mr. Davis (CEO of LifeLock®) obviously stands behind his product. Curiosity got the better of me, and I decided to look into the details of his program and find out how it works.
What LifeLock® does:
First: They ask the credit bureaus to set free fraud alerts on your behalf. This alert requires creditors to take “reasonable” measures in determining your true identity before issuing you credit.
Second: Unless your circumstances change and you tell them not to, every 90 days or so they ask the credit bureaus to do it again.
Third: They request that your name be removed from pre-approved credit card and junk mail lists and they keep making the requests as they expire.
Fourth: They order your free credit reports on your behalf from the major credit bureaus and they are sent directly to you.
Fifth: Hassling with lost or stolen wallets is no longer a problem with WalletLock™. If ever your wallet goes missing, just give them a call - anytime, anywhere - and a WalletLock™ specialist will help you contact each credit card, bank or document issuing company, cancel your affected accounts and complete the paperwork and steps necessary to replace your lost documents*, including your credit/debit cards, driver's license, social security card, insurance cards, checkbook - even travelers checks - at no additional cost. One thing you must remember is pictures, cash and other monies are excluded. Member is responsible for all applicable fees charged by document issuing companies to replace lost or stolen documents.
Sixth: If your Identity is stolen while you are a member of LifeLock, they are going to do whatever it takes to recover your good name. If you need lawyers, their going to hire the best they can find. If you need investigators, accountants, case managers, whatever, they're yours. If you lose money as a result of the theft, their going to give it back to you.They will do whatever it takes to help you recover your good name and we will spend up to $1,000,000 to do it. LifeLock® provides these services for a monthly charge of $10 a month, or $120 a year.
Is There a Catch?
The catch is you can do everything yourself for free except having $1,000,000 worth of lawyers, accountants, and case managers that LifeLock offers in the event your identity is stolen.
Also, consider that LifeLock co-founder Robert Maynard, Jr. resigned from his position after an articles published by the Phoenix Times disclosed his past bankruptcies as well as an incident that he may have stolen his own fathers identity to obtain an American Express Card. According to Todd Davis, Maynard still maintains a 10% stake with the company and "consults" for the business from time to time.
If you’d rather save the money and have an extra hour or two of free time, here is how you can achieve the same level of fraud protection yourself:
First: If you feel that you are at an increased risk for identity theft, you can call the three credit bureaus (Experian, Equifax, and Transunion) yourself and ask that they place a “fraud security alert” on your credit file. Again, this alert requires creditors to take “reasonable” measures in determining your true identity before issuing you credit.
Second: The initial “fraud security alert” is only good for 90 days, before this time period has expired, be sure to renew the alert with each of the credit bureaus, and continue to do this every 90 days.
Third: Simply call 1-888-5OPTOUT to have your name removed from pre-approved credit mailing lists. The fewer credit applications you get in the mail, the less chance thieves have of finding the forms and mailing them back on your behalf. Plus you can help save a couple trees!
Fourth: Log on to http://www.annualcreditreport.com/ to receive your free credit report from the 3 credit bureaus. If you need help with this, you can read my step by step guide here, complete with actual screen shots of when I pulled my free report.
Fifth: Always keep a list (not in your wallet) of the contact information for all of your credit, and debit cards, along with any other items in your wallet that you will need to get replaced in the event your wallet is lost or stolen. Call up your credit, and debit card providers as soon as possible and have them put a hold on your accounts.
Sixth: The value of LifeLocks® $1,000,000 guarantee service is questionable. If your identity has been stolen, and you’ve filed a police report with a law enforcement agency or the Department of Motor Vehicles (in some states), you are not liable for a dime! You also are not required to make any minimum payments during the investigation period while your account is being cleared up.
The Bottom Line
If you feel that you are at an increased risk of Identity Theft, or just want the added piece of mind, LifeLock’s $120/year service may be worth it for you. The service is not a scam, as I have heard many people claim, and their terms are straightforward. They even state very clearly online that most of their services can be done by you for free. If you do want to save the money and do it yourself, simply follow my steps outlined above and your file will be as equally protected, and you’ll have $120 apply to some other area of you finances!
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3 comments:
As you didn't bring it up, I also feel the need to mention that it is proof that the owner/founder did steal his father's identity and basically ruined his credit with it. A quick google search will provide plenty of verifiable documents.
done deal, thanks for the tip!
Although I disagree that a quick google search will ever provide "verifiable documents" lol!
Sorry, I'm an IT person, quick is relative I suppose. Heh. It was easy for me to find, I don't want to link it here directly though for obvious reasons.
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