Victims of gift-card scam sue Target, allege Minneapolis retailer profited from fraud

Four fraud victims from Pennsylvania have filed a class-action lawsuit against Target in the U.S. District Court of Minnesota. The plaintiffs allege that Target has been profiting from gift card scams by failing to implement adequate security measures to prevent fraud and by not refunding victims. Specifically, they claim Target does not effectively use its security algorithms and real-time tracking software to stop scammers, particularly in "impersonator scams" where fraudsters trick consumers into purchasing Target gift cards. The lawsuit further accuses Target of misrepresenting that it cannot take action after gift cards are spent and doing little to warn customers about potential fraud. Target has responded by stating it partners with law enforcement, employs in-store prevention methods, and has cybersecurity experts working to mitigate fraud. The company also maintains websites to educate consumers about scams and launched a 2023 campaign with the Cybercrime Support Network to raise awareness about online financial scams.

Link to article: https://www.startribune.com/victims-of-gift-card-scam-sue-target-allege-minneapolis-retailer-profited-from-fraud/601424576

Source: Star Tribune (startribune.com), original story linked above.