FTC: Lifelock failed to protect its customers (again)

In 2014, the Lifelock Wallet iOS and Android apps were pulled due to concerns that they did not, despite being the company's sole purpose, secure their users' data adequately. That wasn't the company's first brush with security troubles, however. Back in 2010, the company settled with the FTC and 35 state attorney generals over "deceptive claims", and now the FTC has set its sights on the company again, saying Lifelock has failed to adhere to those settlement terms.

According to a recent statement by the FTC, Lifelock has failed to take the steps needed to keep its users' data safe, and it has continued "to make deceptive claims about its identity protection services." A complaint has been filed in the US District Court for the District of Arizona as a result.

Because Lifelock allegedly failed to meet the 2010 settlement terms, the FTC is requesting that the company being ordered to give full redress to all customers that were affected by its alleged violations. The FTC's consumer protection director made it clear that if companies do no meet their obligations, "we will act."

The entire issue revolves around the FTC's claim that Lifelock has used "false claims" about protecting consumers' identity from identity thieves. The settlement required Lifelock to improve its security in regards to data it got from its customers, as well as pay $12 million in refunds and stop making false statements. Now, says the commission, Lifelock has violated the settlement by reportedly failing to protect user data adequately, making false claims, and failing to keep records in accordance with the settlement.