On [date], New York Attorney General Letitia James launched a lawsuit against Early Warning Services (EWS), the parent company of Zelle, alleging that the company enabled over $1 billion in fraud from 2017 to 2023. The lawsuit, citing a press release from James’ office, states that EWS was aware of Zelle’s vulnerabilities from the outset but failed to implement basic safeguards or enforce meaningful anti-fraud rules on its partner banks. The Attorney General’s office argued that EWS and its partners knew fraud was spreading for years but did not take actionable steps to address the issue.
James is seeking restitution, damages, and a court order compelling Zelle to adopt anti-fraud measures. In a statement, she said,