Zelle
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BAC, JPM & COF-Owned Zelle App Faces Lawsuit Over Security Lapse
ZACKS· 2025-08-15 15:15
Key Takeaways New York AG sued Zelle for allegedly failing to prevent over $1B in consumer fraud.Zelle's owners, including Bank of America and JPMorgan, were aware of risks since 2017.Zelle says 99.95% of transactions are fraud-free and calls the lawsuit a political stunt.On Wednesday, the New York Attorney General, Letitia James, filed a lawsuit against Zelle, alleging that the payment platform failed to implement crucial safety measures, allowing fraudsters to steal over $1 billion from consumers.Zelle Ap ...
X @Forbes
Forbes· 2025-08-14 13:08
In this issue of Forbes Daily:- Why New York is suing online payment app Zelle- Shares of Bullish more than doubled their initial offering price Wednesday- Forbes estimates that Trump’s top advisors are worth $7.5 billionRead more: https://t.co/i1ozyLxAwU https://t.co/An5hLsLxJ0 ...
X @The Wall Street Journal
The Wall Street Journal· 2025-08-13 17:49
New York Attorney General Letitia James is suing the owner of Zelle for allegedly failing to protect its users from fraud, reviving claims the Trump administration had abandoned https://t.co/aaPda5ABsU ...
New York AG James sues Zelle parent company for alleged fraud
CNBC· 2025-08-13 15:53
Core Viewpoint - New York Attorney General Letitia James has filed a lawsuit against Early Warning Services (EWS), the operator of the Zelle payments network, for allegedly enabling fraud that resulted in over $1 billion in losses for users between 2017 and 2023 [2][4]. Group 1: Allegations Against EWS - The lawsuit claims that EWS designed Zelle without essential safety features, making it particularly vulnerable to fraud [2][3]. - It is alleged that EWS was aware of the network's susceptibility to fraud from the outset but failed to implement basic safeguards or enforce anti-fraud measures with partner banks [3][4]. - The registration process for Zelle is criticized for lacking verification steps, contributing to its status as a "hub for fraudulent activity" [4]. Group 2: Legal Actions and Responses - Attorney General James is seeking restitution and damages, as well as a court order requiring Zelle to implement anti-fraud measures [4][5]. - This lawsuit follows a similar case dismissed by the Consumer Financial Protection Bureau (CFPB) in March, which had also targeted EWS and major banks involved in Zelle transactions [5][6]. - The CFPB's case was dismissed with prejudice, indicating that the agency will not pursue these claims again [6].
X @Bloomberg
Bloomberg· 2025-08-13 15:38
New York’s attorney general is picking up an effort dropped by the Trump administration’s Consumer Financial Protection Bureau, accusing a bank-owned financial-technology company of allowing fraud to run rampant on the Zelle peer-to-peer payments network https://t.co/TKwCJ0J4dj ...