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San Francisco opens $1.5M restitution fund for Vanilla gift card draining victims

San Francisco opens $1.5M restitution fund for Vanilla gift card draining victims

Rule Changes San Francisco, CA local

Settlement with InComm covers unauthorized card losses from 2019-2024; claims accepted at CAGiftCardSettlement.com until Feb. 19, 2027

October 23rd, 2026: Settlement reached; $1.5M restitution fund opens

Overview

Updated Oct 25

Californians who bought Vanilla gift cards and found the balances gone can apply for compensation from a $1,525,000 fund. San Francisco City Attorney David Chiu announced the fund on Oct. 23, 2026, under a settlement with InComm Financial Services, the company behind Vanilla cards, which his office sued in 2023.

Cards bought in California between Nov. 1, 2019, and Sept. 30, 2024, qualify, and claims are open through Feb. 19, 2027, at CAGiftCardSettlement.com, by phone at 1-888-808-2479 or by email. Cardholders who submit complete documentation can claim the full amount they lost. Without records, the payment is a flat $15 per card, capped at $30.

Why it matters

Californians who lost money on drained Vanilla gift cards can get it back, but only by filing a claim by Feb. 19, 2027.

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Key Indicators

$1,525,000
Restitution fund total
Allocated to eligible claimants from the InComm settlement.
Feb 19, 2027
Claim deadline
Claims must be submitted online or postmarked by this date.
Nov 2019 - Sep 2024
Covered purchase period
Vanilla gift cards purchased in California during this window qualify.
$15
Base payment without proof
Flat payment per card if no proof of claim submitted; max $30 for two cards.
75%
Payment with partial records
Share of reported losses available when a claim includes some but not all supporting documents.

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People Involved

David Chiu
David Chiu
San Francisco City Attorney
Announced settlement and restitution fund

Organizations Involved

FS
InComm Financial Services
Prepaid payment card company
Settled 2023 lawsuit; denies allegations

Georgia-based company that manufactures Vanilla-brand prepaid gift cards sold at retailers nationwide.
San Francisco City Attorney's Office
San Francisco City Attorney's Office
Municipal legal office
Prosecuted case; now administering settlement notice

Municipal legal office that brought consumer protection action against InComm under California law.

Timeline

2023 June 2027

4 events Latest: October 23rd, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. Expected distribution of compensation payments

    Upcoming Scheduled

    Payments are slated to be sent out to approved claimants around this date.

  2. Deadline for consumers to file claims

    Upcoming Deadline

    Eligible Californians must submit claim forms and attestations online or by mail postmarked by this date.

  3. Settlement reached; $1.5M restitution fund opens

    Latest Settlement

    InComm agreed to pay $1.5 million for California consumers harmed by unauthorized transactions on Vanilla gift cards purchased from 2019 to 2024.

  4. Chiu sues InComm over Vanilla gift card draining

    Legal

    San Francisco City Attorney David Chiu filed a consumer protection lawsuit alleging insecure packaging enabled thieves to drain card balances.

Scenarios

1

Settlement pays out on schedule at stated amounts

Likely Resolves by Q2 2027

Discussed by: Settlement website payment schedule and KQED report

If the total value of valid claims stays within the $1.5 million fund, the Claims Administrator issues payments around June 19, 2027. Claimants with complete proof of claim receive full reimbursement; incomplete proof yields up to 75%; no proof yields up to $15 per card, capped at $30.

2

Claims overwhelm fund, payments prorated

Possible Resolves by Q2 2027

Discussed by: Settlement terms allowing adjustments based on claim volume

The settlement explicitly allows payment adjustments based on the number and value of valid claims. If total claims exceed the $1.5 million fund, the administrator reduces individual payouts. Claimants who filed without proof of claim get lowest priority and could see their $15 reduced.

3

Most eligible victims miss deadline, fund underused

Possible Resolves by Q2 2027

Discussed by: Common pattern in consumer settlements

Many victims may never learn about the fund or lack the required documentation (receipts, serial numbers, card numbers). The claims process requires a mandatory attestation under penalty of perjury. If eligible claims total less than the fund, unclaimed money may remain or be reallocated by court order.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

November-December 2013

Target data breach (2013)

Hackers stole payment card data from 40 million Target customers during the holiday shopping season. The breach was traced to stolen network credentials from a heating and ventilation contractor that worked with Target.

Then

Target paid $18.5 million to settle probes by 47 states and the District of Columbia in 2017, plus separate class-action settlements.

Now

The breach accelerated the U.S. transition to chip-enabled payment cards and changed retailer data security practices.

Why this matters now

Like the Vanilla card case, a mass consumer security failure prompted state-level enforcement and restitution, and the settlement pushed an industry toward better security standards.

August 2025 - present

Zelle fraud lawsuit (2025)

New York Attorney General Letitia James sued Early Warning Services, the company that operates Zelle, over alleged widespread fraud on the payment platform. A judge in 2026 denied the company's motion to dismiss.

Then

Zelle faces ongoing litigation over consumer fraud protection; the case continues in court.

Now

The litigation could set precedent for how much liability payment platforms carry for fraud on their networks.

Why this matters now

Another state attorney general using consumer protection law to seek accountability and potential restitution for fraud victims, mirroring Chiu's action against InComm.

Sources

(7)
+1
KQED News ABC7 San Francisco PRNewswire / Morningstar Law Commentary City and County of San Francisco CAGiftCardSettlement.com San Francisco City Attorney's Office / Claims Administrator