New York Attorney General Letitia James on Wednesday sued Early Warning Services (EWS), which operates Zelle, alleging the electronic money-transfer service fails to protect its users from “massive amounts of fraud.”

Related video from Dec. 2024: Zelle, major banks face lawsuit alleging fraud negligence

The lawsuit alleges that EWS knew that key features of Zelle’s service made it susceptible to fraud, but it still failed to implement safety measures and allowed scammers to steal over $1 billion. EWS is owned by a consortium of large U.S. banks, including JPMorgan Chase, Bank of America, Capital One and Wells Fargo.

The lawsuit, filed in New York State Supreme Court, comes after the Consumer Financial Protection Bureau dropped a similar case against some of Zelle’s backers in March, p

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