US Edition
New York Attorney General Sues Zelle Operator Over $1B in Alleged Fraud
The lawsuit alleges Zelle ignored warnings and failed to implement safeguards, enabling fraudsters to steal over $1 billion from users since 2017, according to New York Attorney General Letitia James.
- On Wednesday, Early Warning Services, the company behind Zelle, was sued by New York’s Attorney General, Letitia James, who accused the platform of enabling extensive fraud.
- The lawsuit follows a similar Consumer Financial Protection Bureau case dismissed in March and claims EWS and partner banks ignored fraud risks for years.
- Since its launch in 2017 and now serving 151 million users, Zelle has faced accusations that its inadequate security measures enabled fraudsters to siphon off more than $1 billion through irreversible transactions.
- James emphasized that victims of scams should not have to handle the consequences alone and is pursuing compensation, damages, and court-ordered implementation of anti-fraud protections for consumers.
- The lawsuit implies increased regulatory scrutiny and pressures Zelle and its bank owners to strengthen fraud protections and assist victims more effectively.
128 Articles
128 Articles
New York Accuses Bank-Backed Zelle of $1 Billion Security Bungle
New York Attorney General Letitia James says the digital payments network Zelle, owned by a consortium of Wall Street banking giants, “has been teeming with fraudsters who have stolen staggering sums from consumers.” Zelle says James’ office, which accused its parent Early Warning Services in a lawsuit Wednesday of enabling fraud by doing next to nothing to stop it, is engaging in nothing more than a “political stunt to generate press.” The hea…
NY attorney general sues Zelle over security failures linked to $1B in fraud
New York Attorney General Letitia James has targeted some of the nation’s largest banks, accusing them of letting consumers fall victim to fraud. Her office filed a lawsuit against Early Warning Services, the company behind the popular payment app Zelle, citing the absence of key security features. Attorney general targets Zelle over alleged fraud James said the lawsuit follows an investigation by the attorney general’s office that found scammer…
Associated Press News
NY attorney general sues Zelle's parent company after Trump administration drops similar case
New York’s attorney general has sued the parent company of the Zelle payment platform, months after the federal Consumer Financial Protection Bureau abandoned a similar case under the Trump administration.
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