Saturday, August 16, 2025

New York Takes Legal Action Against Zelle Over Security Failures Linked to $1 Billion in Consumer Fraud

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New York Takes Legal Action Against Zelle Over Security Failures Linked to Billion in Consumer Fraud
New York Attorney General Letitia James filed a lawsuit against Zelle on Wednesday, accusing the electronic payment platform of enabling fraud that resulted in more than $1 billion in consumer losses. The suit cites Zelle’s refusal to adopt essential safety features and its failure to address ongoing fraud complaints, despite the platform’s claims of security backed by major banks. The lawsuit follows a recent halt in similar actions by the U.S. Consumer Financial Protection Bureau. James argues that Zelle’s practices have left users vulnerable to scams, while the platform maintains that fraud originates from user deception rather than its service. The lawsuit seeks to enforce enhanced anti-fraud protections and provide restitution to affected New Yorkers.
Original source:
https://nypost.com/2025/08/14/business/new-york-sues-zelle-says-security-lapses-led-to-1-billion-consumer-fraud-losses/

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