Visa USA Hit With Lawsuit Over Gift-Card Draining Vulnerability

Visa USA Inc. deceptively marketed and sold gift cards to consumers that were easily drained of their funds by thieves, and refused to give refunds to customers who complained, a proposed federal class action said.

Ira Schuman alleged the company knew or should have known that its Visa Vanilla gift cards were vulnerable to tampering, but failed to implement reasonable security measures to make them secure.

Schuman lost $4,000 to thieves who drained gift cards he purchased in 2022 and 2023 before they could be used, according to a complaint filed Tuesday in the US District Court for the Southern ...