Fear of identity theft has created a healthy business in identity theft protection, but recently an industry leader appears to have come up short

Lifelock promises a wide range of consumer identity theft protections and notices.

Kate Yanov said the day after her identity was stolen 18 months ago she joined Lifelock.

"Lifelock appeared as the industry leader," Yanov said. "Even the CEO put his social security number in their advertisements."

Yanov said for a year she thought things were going smoothly until her phone rang.

"I got a call from Sprint Wireless asking about my new wireless number that I opened up," she said. "And, I said, 'Nope, I have AT&T. I didn't open a Sprint Wireless.'"

Yanov says only after she notified Lifelock of this did Lifelock put a fraud alert in her credit file.

Not long after, Yanov went to financial giant USAA for a car loan, someone had created an account in her name there also.

"I called Lifelock," she said. "I actually reached out to them because I didn't get an alert from them, like is advertised in their services."

Yanov said Lifelock's agent told her that neither corporate giant, Sprint or USAA, are in the network of companies they check for ID theft activity.

"They wouldn't disclose the Lifelock network," she said. "That said it's a proprietary database and I asked them, 'Well, how would I ever know if they're included?' They said that they just report on those in their network."

Lifelock claims it did send an alert, but declined an on camera interview with KTVU to flesh it and other questions out.

Instead, the company issued a written statement: "We are sorry that a Lifelock member has had a less than outstanding experience. Lifelock is committed to providing the best service possible."

Numerous reports say that the CEO's Social Security number has been misused 13 times. In 2010,34 other states and the Federal Trade Commission sued Lifelock for misleading consumers and got a $12 million settlement.

Kate Yanov says, "They offer services that you can actually do yourself."

Rick Harper is vice-president of the nonprofit Consumer Credit Counseling service, a group that helps many ID theft victims.

"You don't have to spend money on any of these services," he said.

He recommends that consumers go to the free website: www.annualcreditreport.com.

There, consumers can get a free copy of their credit report, one a year from each of the big three credit reporting agencies.

"If you check periodically, you're going to catch it quickly enough and, therefore, you can save that money," Harper said. "Instead of pulling all three credit reports at once, pull one of the major agencies every four months, that way you've got the whole year."

If consumers do find problems they easily place a fraud alert on their own credit report. Then, if someone tries to use a bogus account, or use a stolen credit card, they're actually going have to produce proof that they are who they say they are.