New York Attorney General Letitia James has sued the operators of the Zelle payment app, alleging they failed to protect users against a tide of fraud by scammers who managed to steal a total of more than $1 billion.

The new case in state court in Manhattan effectively rekindles a federal agency's abandoned effort to go after Zelle on behalf of alleged scam victims. That agency — the Consumer Financial Protection Bureau — filed a federal lawsuit against Zelle's operators and several major banks in December, but then abruptly dropped the case in March after the Trump administration took over.

“No one should be left to fend for themselves after falling victim to a scam,” said James in a statement announcing the case on Aug. 13. “I look forward to getting justice for the New Yorkers who suf

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