San Francisco City Attorney David Chiu has filed a groundbreaking lawsuit against InComm Financial Services, Inc., the makers of popular gift cards found in grocery stores and retailers across the country. The lawsuit alleges that the cardboard packaging used for Vanilla gift cards is insecure, making them highly susceptible to scammers and unauthorized transactions.
Chiu claims that the loose packaging of these gift cards allows scammers to easily obtain the card number, reseal the package, and drain the funds before the actual customer has a chance to use it. This longstanding vulnerability has reportedly been known to InComm for over a decade, yet the company has failed to implement fixes or issue refunds to affected consumers.
“While we enter the holiday season, it is crucial that we hold InComm accountable for adopting industry-standard security measures to prevent card draining and provide restitution to harmed consumers,” Chiu stated.
The lawsuit seeks penalties, restitution for affected consumers, and injunctive relief to ensure that future customers are not exposed to similar vulnerabilities. Chiu encouraged any individual who has experienced issues with InComm or Vanilla Gift Cards to contact the city attorney’s office through their consumer complaint web portal or hotline.
This lawsuit sheds light on the ongoing problem of card draining, where scammers exploit security weaknesses in gift card packaging. It serves as a reminder for companies to prioritize the security of their products to protect consumers’ hard-earned money.
Q: What is card draining?
A: Card draining is a fraudulent practice where scammers exploit vulnerabilities in gift card packaging to obtain the card number and drain the funds before the legitimate customer has a chance to use it.
Q: What is the purpose of the lawsuit?
A: The lawsuit aims to hold InComm Financial Services accountable for the security vulnerabilities in the packaging of Vanilla gift cards, seek restitution for affected consumers, and ensure that future customers are not put at risk.
Q: How can consumers report their experiences with InComm or Vanilla Gift Cards?
A: Consumers can report their experiences to the San Francisco City Attorney’s office through their consumer complaint web portal or hotline at (415) 554-3977.