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Visa is facing a lawsuit over allegations that the company failed to enhance security measures for its prepaid “Vanilla” gift cards, making them susceptible to a scam known as “card draining.” Consumers claim that thieves can easily tamper with the non-reloadable debit cards, sold at various retailers, leading to funds being stolen. The lawsuit, filed in a New York federal court, accuses Visa and other defendants of violating consumer protection laws and seeks compensatory and punitive damages for affected individuals in New York since January 30, 2021. Visa and the other defendants have not yet responded to the allegations.
Visa is sued over ‘Vanilla’ gift card scam known as ‘draining’ (nypost.com)