US EditionNew 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.
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New York sues Zelle after Trump's CFBC drops similar case: 'No one should be left to fend for themselves after falling victim to a scam'
In a statement, James' office noted that its suit was filed after the CFPB abandoned its lawsuit following a “change in the federal administration.”
New York files lawsuit against Zelle over scams and security lapses that led to $1 billion in losses
The latest lawsuit targets Early Warning Services, LLC (EWS). Zelle's parent firm is owned by seven of the largest banks in the US: Bank of America, Capital One, JPMorgan Chase, PNC, Truist, US Bank, and Wells Fargo.Read Entire Article
N.Y. sues Zelle parent company, accusing it of ‘catastrophic’ consumer fraud
N.Y. Attorney General Letitia James hosts a town hall at SUNY Westchester Community College on May 08, 2025, in Valhalla, New York. (Photo by Spencer Platt/Getty Images) OAN Staff Katherine Mosack 11:54 AM – Thursday, August 14, 2025 The State of New York, being represented by New York Attorney General (AG) Letitia James, is now suing the... The post N.Y. sues Zelle parent company, accusing it of ‘catastrophic’ consumer fraud appeared first on D…
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