Visa USA Accused of Selling Gift Cards With Easily Exploitable Vulnerabilities in Criminal Complaint

Published on February 1, 2024

Visa USA Inc. is facing accusations of deceptive marketing and selling gift cards with serious and easily exploitable security vulnerabilities, allowing scammers to drain the funds. In a Jan. 30 criminal complaint filed in the United States District Court for the Southern District of New York, the plaintiff, Ira Schuman, alleges that Visa knew its Vanilla gift card product was vulnerable to tampering and did nothing to protect its customers. Mr. Schuman also claims Visa refused to refund customers who complained about being scammed. Visa Vanilla cards, sold at CVS, Target, Walgreens, and various other outlets, can be pre-loaded with cash and then used like debit cards to purchase goods and services. The cards can be used without access to a traditional bank account for both online and in-person purchases....

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