Think Zelle Is Safe? This Billion-Dollar Lawsuit Says Otherwise

Early Warning shirked safeguards, NY says

As states step into the breach left by the CFPB, New York alleges Zelle’s parent devised security policies in 2019 to counter fraud on the payments network, but didn’t impose them for four years.

Think Zelle is safe? This billion-dollar lawsuit says otherwise

New York’s attorney general is suing Zelle, claiming the money transfer app left users vulnerable to scams and fraud. Here’s what consumers should know.

Payment service Zelle sued for bad infosec enabling fraud

Infosec In Brief: PLUS: Kryptos solution up for auction; Canadian parliament springs a leak; Fake crypto lawyers; And more

New York AG Letitia James Sues Zelle’s Parent Company Over $1 Billion Fraud Losses

New York Attorney General Letitia James has filed a lawsuit against Early Warning Services, LLC (EWS), the company that operates Zelle. She is accusing EWS of enabling widespread fraud that cost users more than $1 billion between 2017 and 2023. The lawsuit, announced on August 13, 2025, alleges that EWS—owned by major U.S. banks including JPMorgan Chase, Bank of America, Capital One, and Wells Fargo—launched and marketed Zelle without sufficient…

P2P payment service Zelle sued for enabling payment fraud hell

PLUS: Kryptos solution up for auction; Canadian parliament springs a leak; Fake crypto lawyers; And more Infosec In Brief New York State is suing bank-owned peer-to-peer payment app Zelle, claiming that the banks behind it knew fraud was rampant on the platform but allowed scammers to conduct business with impunity. . . .

Company Behind Zelle Sued by NY AG for ‘Enabling Widespread Fraud’

Attorney General Letitia James has accused the company, Early Warning Services, LLC (EWS), of failing to protect Zelle users from massive amounts of fraud, the suit states.