Visa is sued over 'Vanilla' gift card scam

Visa credit and debit cards are seen in this picture illustration taken August 2, 2022. REUTERS/Benoit Tessier/File Photo

(Reuters) - Visa was sued on Tuesday by consumers who said the card payments network failed to make prepaid "Vanilla" gift cards less likely to being drained by thieves.

Ira Schuman, who leads the proposed class action in the White Plains, New York, federal court, said he bought eight $500 Vanilla cards as holiday gifts for his employees in 2022 and 2023, only to learn later that cards had been emptied.