Google Wins Gift Card Fraud Case The lawsuit alleges the company is illegally profiting from gift card fraud. Because the tech giant has refused to refund the victims. However, the court ruled in favor of Google.
US District Judge Beth Labson Freeman said the plaintiff in the case, Judy May, could not prove that Google harmed her or knowingly received a commission from the stolen money. Note that in April 2021, May lost $1,000 in Google Play gift card fraud.
Google keeps a standard commission of 15 percent to 30 percent on purchases made using gift cards, the court said. These commissions are the company's general business policy, which also applies to gift card purchases. This procedure is not related to the original fraud.
Although the case was dismissed, the court allowed May to re-file her case. However, the compensation claim has been permanently dismissed.
The lawsuit was filed against Indiana resident Judy May for $1,000 in damages. An impostor pretends to be a relative to deceive. The scammer encourages the victim to purchase a Google Play gift card. May give the gift card codes to the fraudster. As a result, fraudsters make purchases with gift cards.
“For nearly a decade, Google has kept millions of victims of gift card fraud out of stolen money,” the lawsuit alleges.
The lawsuit claims Google should have warned customers about the gift card scam. In addition, the company was accused of profiting from fraudulent activity by taking commissions on purchases made with stolen gift cards.
According to data from the Federal Trade Commission (FTC) in the United States, US citizens lost $217 million to gift card or reload card fraud in 2023.
However, the actual amount of money lost to fraud is likely to be much higher, as these data are based only on reported cases. Google Play gift cards account for about 20 percent of gift card fraud, Judy May said, citing FTC data from 2021.
References: Reuters
