Visa beats lawsuit over alleged gift card scam vulnerabilities – report

Visa (NYSE:V) dodged a consumer lawsuit over its Vanilla gift cards after a federal judge found buyers should not assume the cards are immune to fraud or that Visa’s logo guarantees protection, according to a media report published Monday.

U.S. District Court Judge Gregory Woods also threw out an allegation that Visa (NYSE:V) did not do enough to warn about tampering risks, pointing to widespread news reports and online talks highlighting Vanilla card scams, Reuters reported.

“No reasonable consumer would expect the allegedly ‘widespread’ practice of third-party scams affecting prepaid cards to somehow not affect one of the industry’s major suppliers,” he wrote.

The suit aimed to recover damages for New York-based buyers of Visa’s (V) Vanilla cards, claiming the company broke state consumer protection rules, the article said.