NY attorney general sues Zelle's parent company, alleging the payment service enabled widespread fraud
Share this @internewscast.com

On Wednesday, New York’s attorney general initiated a lawsuit against the parent company of the Zelle payment platform. This move comes months after the federal Consumer Financial Protection Bureau ceased a similar legal action during a period when the Trump administration was significantly scaling back the agency’s operations.

Letitia James, the Attorney General and a member of the Democratic Party, filed this case in New York state court. The lawsuit targets Early Warning Services, a firm owned by several U.S. banks, accusing it of not incorporating key security measures into Zelle’s design, thereby leaving users exposed to fraudulent activities.

Options to use the Zelle payments network are seen on a mobile banking app in New York, Dec. 20, 2024.

Options to use the Zelle payments network are seen on a mobile banking app in New York, Dec. 20, 2024.

AP Photo/Patrick Sison, File

Earlier this year, the Consumer Financial Protection Bureau withdrew a comparable lawsuit, following the dismissal of its leader by President Donald Trump. The administration subsequently shut down many of the bureau’s operations, closed its main office, and initiated a series of layoffs.

According to a statement from James’ office, their lawsuit was introduced in response to the Consumer Financial Protection Bureau’s decision to drop their case due to a “change in the federal administration.”

“No individual should be left vulnerable after becoming a victim of fraud,” James expressed in a statement. “I am eager to seek justice for the New Yorkers who suffered due to the insufficient security measures of Zelle.”

James has been a prominent opponent of Trump and has taken legal action against him numerous times. Recently, reports by The Associated Press and other media indicated that the Justice Department has issued a subpoena to James as part of an inquiry into whether she infringed upon Trump’s civil rights, according to sources familiar with the situation.

James’ case against Early Warning Services alleged that Zelle, which allows users to send and receive near-instant money transfers, failed to include adequate verification processes. Her office said scammers were able to access peoples’ accounts or trick users into sending money to bogus accounts that posed as official businesses.

In one instance cited by the attorney general’s office, a Zelle user got a call from someone posing as an employee of the utility company Con Edison who told the user that his electricity was going to be shut off unless he sent them money through Zelle. The user then transferred about $1,500 to a Zelle account named “Coned Billing” and then realized he had been scammed but was told by his bank that he could not get his money back, James’ office said.

In a statement issued through a spokesperson, Zelle called James’ lawsuit “a political stunt to generate press, not progress.”

“The Attorney General should focus on the hard facts, stopping criminal activity and adherence to the law, not overreach and meritless claims,” the statement said.

Copyright © 2025 by The Associated Press. All Rights Reserved.

Share this @internewscast.com
You May Also Like
Iran's supreme leader severely disfigured by US strikes: report

Report Claims Iran’s Supreme Leader Injured in US Strikes

In a significant development, Iran’s new Supreme Leader, Mojtaba Khamenei, has been…
NY man gives up the fight for his 12-foot emotional support pet alligator

New York Resident Reluctantly Parts with Beloved 12-Foot Emotional Support Alligator

It seems the fierce struggle against the scales of justice has come…
Lunatic attacks US war plane at Shannon Airport in Ireland: reports

Shannon Airport Incident: Individual Allegedly Targets US Military Aircraft

An individual wielding a hatchet reportedly launched an assault on a US…
US and Iran end 21-hour ceasefire talks without agreement before Vance departs Pakistan

US-Iran Ceasefire Negotiations Stall: 21-Hour Talks End Without Resolution as Vance Leaves Pakistan

Vice President JD Vance has announced that talks with Iran concluded without…
News of the World: April 11, 2026

World News Update: April 11, 2026

ENGLAND A devoted fan from Milton Keynes, England, has set a new…
Artemis II crew reflects emotionally on lunar mission after safe return: 'Bonded forever'

Artemis II Astronauts Share Emotional Journey and Lifelong Bond After Successful Moon Mission Return

The Artemis II crew, fresh from their historic 10-day lunar mission, made…
Pope Leo XIV blasts 'delusion of omnipotence' fueling US-Israeli war in Iran

Pope Leo XIV Criticizes ‘Illusion of Power’ Behind US-Israel Conflict in Iran

In a powerful statement, Pope Leo XIV on Saturday condemned the “illusion…
LA's top federal prosecutor makes staggering claim about scale of California fraud

California Fraud Scandal Unveiled: LA’s Chief Prosecutor Reveals Massive Scope of Deception

California has been rocked by revelations of a significant Medi-Cal fraud scheme,…
Minnesota fraud suspect Abdirashid Said charged with stealing $11M skips court date

Fugitive Alert: Minnesota’s $11M Fraud Suspect Abdirashid Said Evades Court Appearance

A significant turn of events has unfolded in Minnesota as a man…
Maniac on the run after stabbing passenger on downtown LA bus

Urgent Manhunt Underway: Suspect Sought in Downtown LA Bus Stabbing Incident

In a disturbing incident that unfolded in broad daylight, a man armed…
Husband of American woman missing in Bahamas should 'tell the truth' about boating incident, his stepmom says

Stepmom Urges Truth from Husband in Disappearance of American Woman in Bahamas Boating Mystery

Brian Hooker’s stepmother has implored him to “come clean” regarding the mysterious…
Zohran Mamdani's legal adviser calls NYC mayor 'real political leader' of Gen Z Jews

Discover Why NYC Mayor is Winning the Hearts of Gen Z Jewish Voters: Insights from Zohran Mamdani’s Legal Adviser

Now that’s a bold move! New York City Mayor Zohran Mamdani is…