Is your credit protection service perfect?

When I do presentations to community groups, we talk about scams and cons, but also credit protection. On multiple occasions, I’ve been asked, “Should I sign up for LifeLock?” Or, phrased differently, “Is LifeLock worth the price?” There’s no simple answer to this question about credit protection, but one thing is certain, LifeLock will be getting a lot of free publicity in the coming months, and not all of it may be good.

On July 21, 2015, the Federal Trade Commission (FTC) filed a complaint against LifeLock, Inc., alleging the company failed to establish and maintain a comprehensive information security program to protect its users’ sensitive personal data. The data listed includes credit card, social security, and bank account numbers. It’s important to note the complaint is directed at LifeLock’s activity from January 2012 through December 2014, not current-day practices.

In a prepared statement posted on their website, LifeLock, Inc. Chairman & CEO Todd Davis said, “…we’re disappointed by the FTC’s decision to file a suit that is not supported by the facts. We are committed to helping protect our members and restoring the identities of those who are victimized by identity fraud.”

This case was filed “under seal,” which means the FTC believes the information contained in the case is sensitive or confidential. If the court decides to keep the case sealed, we may not hear much about the case until it’s resolved.

The real question is, what does all of this mean to you? At this point, bottom line is, “It’s complicated.”

Before we go any further, let’s step back in time four days from July 21 to July 17, 2015. On the 17th, attorneys in California filed a class-action suit against credit bureau giant Experian. The suit alleges Experian failed to detect a scammer who purchased and resold consumer information to identity thieves for nearly 10 months.

The real question is, what do these suits about credit protection mean to you? At this point, bottom line is, “It’s complicated.” Should you rush out and cancel your LifeLock subscription? Probably not, unless the thought of the company charged with protecting your identity being involved in a lawsuit causes you angst. Should you not trust any of these companies? Unless you’re a conspiracist, my answer would be, pick one and hope for the best.

Trust, and value, however are two very different issues. Let’s face it, credit monitoring services, unless provided free of charge because you were included in a data breach, can be expensive. That service, however, isn’t anything you can’t accomplish on your own. Here are three free tips to becoming your own credit watchdog.

• Check your bank statements, or better yet, check your bank account periodically using your bank’s free online service.
• Check your credit report annually using a service such as annualcreditreport.com, where you really do get a free credit report.
• If you can pay off your credit card monthly, use your credit card, not a debit card, for purchases. This affords you a higher level of protection against fraudulent purchases.