LifeLock Reaches $12 Million Settlement with FTC, States

Computerworld reports that LifeLock has agreed to pay $12 million to settle charges by the U.S. Federal Trade Commission and 35 state attorneys general that it overstated its benefits and used "scare tactics" to gain subscribers to its identity theft protection service.

LifeLock advertised that its service prevented ID theft from "ever happening to you. Guaranteed." However, the FTC is aware of "several hundred" LifeLock customers who became ID theft victims after subscribing to the service, says Jon Leibowitz, the FTC's chairman.

LifeLock will pay $11 million to the FTC and $1 million to the states. The FTC money will be used to reimburse LifeLock customers for any pay out-of-pocket expenses they incurred while trying to resolve ID theft problems.