Shares of identity theft protection service provider LifeLock, Inc ( LOCK ) tanked 17.6% on Monday, after the company removed the LifeLock Wallet mobile application (app) from all play stores. Consequently, Apple's ( AAPL ) iStore, Google's ( GOOG ) play store and Amazon ( AMZN ) apps also eliminated the app from their respective offering lists.
The company's decision, announced on May 16, came on the heels of the realization that some of the components of the technology were not in compliance with the security standards of the payment card industry (PCI). LifeLock has initiated steps to delete stored information in the mobile app from its servers.
However, the chief executive officer (CEO) of LifeLock revealed that the termination of the app was not the result of any lapse in the services. It was rather a precautionary measure anticipating certain unforeseen glitches that may come about in the future.
The CEO also revealed the company intentions to develop a new version of the LifeLock Wallet app which will comprise the highest level of PCI compliance. Further, the CEO assured consumers that the withdrawal of the LifeLock Wallet app will not have any impact on LifeLock's subscription identity theft protection services.
LifeLock had acquired the mobile wallet app from Lemon Inc. in Dec 2013, in an all cash deal worth $42.4 million. The app allowed users to replicate and store digital copies of personal wallet contents on smartphone devices for record backup as well as transaction monitoring. The app also allowed the mobile use of items such as credit, identification, ATM, insurance and loyalty cards. This apart, the app also offered a one-touch access to the company's identity theft and protection services.
Based in Tempe, AZ, LifeLock is a leading provider of proactive identity theft protection services for consumers, and fraud and risk solutions for enterprises. The company protects its members by constantly monitoring identity-related events, such as new account openings and credit-related applications.
LifeLock currently holds a Zacks Rank #4 (Sell).