The FTC said LifeLock has agreed to a settlement of $100 million for not following through with an order to secure customers' personal information.
In 2010, the FTC alleged that LifeLock made false promises as to how securely it stored that information, and ordered the company to upgrade its security.
LifeLock did not admit to any wrongdoing, but said on its site that it was looking for closure on the matter.
Users pay LifeLock for identity protection, which includes the safe storage of Social Security, credit card and bank account numbers.
"The fact that consumers paid Lifelock for help in protecting their sensitive personal information makes the charges in this case particularly troubling," FTC Chairwoman Edith Ramirez said in a statement.
The company said on its website that the settlement "will enable LifeLock to move forward with a singular focus on protecting our members from threats to their identity."
"It's important to note that the FTC did not allege, or offer any evidence, that LifeLock has ever had its customers' data stolen," the company said.