New York Attorney General Letitia James has filed a lawsuit against Early Warning Services, the owner of Zelle, for not including necessary safety features that protect users from fraud. Her office has highlighted the abandonment of a similar case by the Consumer Financial Protection Bureau, following changes under the Trump administration. The lawsuit details instances where users were scammed due to Zelle’s inadequate verification processes, allowing individuals to be misled into sending money to fraudulent accounts posing as legitimate businesses. James aims to seek justice for New Yorkers victimized by these security failures.
Attorney General Letitia James alleges that Early Warning Services did not include critical safety features in Zelle's design, which resulted in users falling victim to fraud.
James' lawsuit comes after the Consumer Financial Protection Bureau dropped its case against Zelle due to changes in federal administration and the halt of the bureau's work.
James stated, 'No one should be left to fend for themselves after falling victim to a scam,' emphasizing the need for consumer protection against fraud.
The lawsuit claims that Zelle's inadequate verification processes allowed scammers to trick users into sending money to fraudulent accounts, posing as legitimate businesses.
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