New York AG Letitia James sues Zelle, claiming that security lapses led to $1B+ in consumer fraud losses; the US CFPB dropped a similar case in March 2025
What To Know About Alleged $1 Billion Scams Over The App Lisa Hornung / UPI : N.Y. AG Letitia James sues parent company of Zelle for allowing fraud Truman Lewis / ConsumerAffairs.com : Zelle sued by New York over rampant fraud, $1 billion in losses PYMNTS.com : New York Sues Zelle, Alleging Failure to Prevent Fraud Julia Shapero / The Hill : New York sues Zelle, alleging lack of safeguards against fraud David Perera / PaymentSecurity.io : New York AG Sues Zelle Over Alleged Poor Cybersecurity Briana Scalia / WNYW-TV : Over $1B stolen by scammers: AG James sues Zelle for ‘enabling widespread fraud’ Emma Roth / The Verge : New York claims Zelle's shoddy security enabled a billion dollars in scams Kate Berry / American Banker : NY AG sues Zelle for fraud after CFPB dropped similar suit Dylan Tokar / Wall Street Journal : New York Attorney General Picks Up Zelle Lawsuit Abandoned by Trump Samantha Delouya / CNN : NY attorney general sues Zelle parent company, alleging the payment service enabled widespread fraud Bloomberg Law : NY's Attorney General Picks Up Zelle Fraud Fight From CFPB Bluesky: Romit Mehta / @romitmehta.com : Had Zelle received _any_ positive press? [embedded post] Mastodon: Dan Gillmor / @dangillmor@mastodon.social : I do most of my banking with a company that is a part-owner of “Zelle” — an electronic payment operation that banks eagerly flog to users. It seems designed to offload all risk — including criminal theft from your account — to the user. — No thanks. — https://www.reuters.com/... X: Ny Ag / @newyorkstateag : We're seeking to get the New Yorkers who were scammed their money back and ensure that Zelle maintains anti-fraud measures to protect people. If you were scammed through Zelle, my office wants to know: https://ag.ny.gov/... Ny Ag / @newyorkstateag : Today I'm suing EWS, the company behind @Zelle, for enabling fraud that cost people over $1 billion from 2017-2023. EWS and the big banks that own it knew that Zelle was vulnerable to fraud, but they failed to act, leaving people to fend for themselves after being scammed. Forums: r/law : New York sues Zelle, says security lapses led to $1 billion consumer fraud losses r/newyorkcity : New York sues Zelle, says security lapses led to $1 billion consumer fraud losses r/technology : New York sues Zelle, says security lapses led to $1 billion consumer fraud losses r/news : New York sues Zelle, says security lapses led to $1 billion consumer fraud losses BeauHD / Slashdot : New York Sues Zelle Parent Company, Alleging It Enabled Fraud