Core Viewpoint - The New York Attorney General has filed a lawsuit against Zelle, claiming the payment platform allowed over $1 billion in consumer fraud due to inadequate safety measures [1][4]. Group 1: Lawsuit Details - The lawsuit alleges that Zelle's parent companies, including major banks like Bank of America, JPMorgan, and Capital One, were aware of the platform's vulnerabilities since its launch in 2017 but failed to implement necessary safeguards [2][7]. - Common scams reported include unauthorized transfers through hacked accounts, fraudulent sales of non-existent goods or services, and impersonation of banks or government agencies [3][4]. - The lawsuit seeks to compel Zelle to enhance its anti-fraud measures and provide restitution to affected consumers in New York [4]. Group 2: Zelle's Response - Zelle contends that scams are perpetrated by criminals deceiving users, not due to flaws in the platform itself, and warns that holding the platform accountable could lead to increased fees for consumers [5]. - The company claims that over 99.95% of transactions are completed without any reported fraud, asserting this is the highest rate in the industry [5][7]. - Zelle describes the lawsuit as a political maneuver and urges the Attorney General to focus on combating criminal activity rather than pursuing what it considers unfounded claims [5].