Zelle Hit with Lawsuit for Failing to Prevent Massive Consumer Fraud

New York Attorney General Letitia James sued Zelle, claiming it failed to adopt basic security measures, enabling over $1 billion in fraud.

The lawsuit says Zelle and its parent company ignored risks and customer complaints.

Zelle denies responsibility, saying most fraud starts with users being tricked, and calls the lawsuit a political stunt. The banks that own Zelle were not named as defendants.

New York sues Zelle, says security lapses led to $1 billion consumer fraud losses