Visa defeats lawsuit over 'card draining' Vanilla gift card scam

Visa has successfully defeated a class action lawsuit alleging that its Vanilla gift cards were vulnerable to theft. U.S. District Judge Gregory Woods ruled that it was unreasonable for consumers to expect gift cards to be immune to scams. The lawsuit, initiated by Ira Schuman, claimed that the cards could be tampered with easily, leading to significant losses. The judge noted that consumers were aware of the risks associated with prepaid cards, and thus Visa's warnings were deemed adequate. The case was filed in the Southern District of New York.