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ARTICLE · 30 JUNE 2025

Caveat Emptor: You May Be Robbed

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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As I blogged about late last year, a scam called "gift card draining" has become very prevalent in the marketplace since the pandemic and has caused considerable consumer loss.

United StatesConsumer Protection

As I blogged about late last year, a scam called "gift card draining" has become very prevalent in the marketplace since the pandemic and has caused considerable consumer loss. Thieves remove gift cards from their packaging on retailers' shelves, record the cards' account numbers, return the cards to their packaging, and when purchasers of the cards load funds onto them, the scammers use the account numbers to quickly make purchases before the recipients of the gift cards can. In response to this scam, at least one state has passed a law requiring gift card sellers to put extensive security measures in place for retail sales of gift cards. Others are pending.

One draining victim, robbed by scammers of $1500 from cards intended as holiday gifts for his employees, decided to exercise a little self-help: he sued Visa, In-Comm (the gift card management vendor) and Pathward (the gift card issuer). He, on behalf of himself and others in a putative class, argued that the

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www.fkks.com

This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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