Could criminals add themselves as authorized signers on your bank account? That is precisely what LifeLock claims they can prevent, advertising what they call Takeover Fraud Protection.
This bank account takeover fraud protection is not a new product, rather they are adding it as an additional feature to their LifeLock Ultimate plan. The cost of this plan is currently $25 a month or $275 a year.
They claim to scan “for changes to contact information on existing checking and savings accounts.” Additionally, LifeLock monitors “known criminal websites for illegal trading of personal information.” They scan “national databases for new address information.” Those last two features are also available on their two cheaper plans.
So is all of this coverage worth $25 a month? The answer is, probably not.
What many critics have already pointed out is that LifeLock is generally not worth the price because most of its services can be done for free by the consumer. This newly advertised feature of LifeLock points out that many criminals are looking for ways to take control of your bank account.
While true, you generally have 4 other protections that are much greater than anything LifeLock can offer by “monitoring” or “scanning” for criminal activity:
- First, most threats to the security of your bank account are due to criminal actions by your own family members or roommates. Lock up or shred your private information to prevent those closest to you from being tempted.
- Second, protect yourself from identity thieves by using a good virus protection software. This can prevent keyloggers and other viruses from recording your user login information for your bank account.
- Don’t be an idiot like Syria’s President Bashar al-Assad and use something like “12345” for a password. Instead, use a strong password that is not easy to guess (children’s names are also poor choices).
- Make sure your bank has your current cell phone number and email address on file. Most banks are now equipped to automatically notify you via text message and/or email anytime a material change on one of your accounts is made, such as a new signer or even a new billpay recipient.
So what if LifeLock gives you that warm fuzzy feeling inside that you think makes it worth paying for? If so, consider that the Phoenix New Times once reported that CEO Todd Davis was an identity theft victim 13 times over following his publicity campaign. In one instance, he was completely unaware of one crook who took out a $500 loan in his name until after the account was turned over to a debt collector.
LifeLock’s campaign to tout bank account takeover fraud protection as an additional benefit should probably not be a big factor in your decision on whether you think you need to subscribe to their services. As we have pointed out, there are more effective protections available that should definitely be utilized first.
LifeLock Ultimate is a registered trademark of LifeLock.
Long is a graduate of the University of North Carolina at Chapel Hill with a B.A. in Industrial Relations. He subsequently received his Certificate in Nonprofit Management from Duke University. His Certificate in Financial Planning was issued by Florida State University.
Long has achieved the Accredited Credit Counselor and Accredited Financial Counselor certifications through the Association for Financial Counseling, Planning and Education. Long originally achieved the Certified Credit Counselor designation through the National Institute for Financial Education.
In addition to years of nonprofit leadership, Long has been an innovator in the field of volunteer tax return preparation programs. He assists volunteer associations and nonprofit organizations who seek to integrate credit counseling and asset-building programs with free personal income tax preparation. His approach to using free credit reports as both an incentive and a screening tool for placement into asset-building programs has been shared with members of the National Community Tax Coalition, the EITC-Carolinas Initiative of MDC, Inc. and nonprofit groups across the Carolinas.
Long assists members of our armed forces in the Carolinas, Iowa, Rhode Island, Georgia and Germany with financial readiness. Please support our Soldiers, Marines, Airmen and Sailors!
Favorite quote:
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."
Thomas Jefferson
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