New York Prosecutor General Letitia James speaks before the New York Supreme Court before the civil fraud of former President Donald Trump on October 2, 2023 in New York.
John Lamparski | AFP | Getty images
The New York Attorney General, Letitia James, continued the operator of the Zelle Payments Network on Wednesday to have allegedly allowed fraud, months after the financial protection office of consumers has rejected similar legal action.
Early alert services are the owner and designer of the peer money transfer company. A survey by the Prosecutor General’s office revealed that the company had designed Zelle “without critical security characteristics”, which would have enabled the crooks to steal more than a billion dollars to users between 2017 and 2023.
“EWS knew from the start that the main characteristics of the Zelle network made it particularly sensitive to fraud, and yet it failed to adopt basic guarantees to combat these flagrant faults or apply significant anti-fraud rules on its partner banks”, a declaration of the LU office.
The trial allegedly alleged that Zelle has become a “hub for a fraudulent activity” because the registration process lacked verification measures and the EWS and its partner banks knew “for years” that fraud was spread and did not take exploitable measures to resolve it.
James requests a return and damage with the trial, in addition to an order of the court forcing that Zelle puts in place anti-fraud measures.
“No one should be left to manage for himself after being the victim of a scam,” James said in a statement. “I can’t wait to get justice for New Yorkers who suffered because of Zelle’s security failures.”
The trial follows that the CFPB rejected in March. The CFPB continued EWS and JPMorgan Chase,, America Bank And Wells Fargo – The three American banks that dominate transactions on Zelle – in December for allegedly failed to investigate fraud or reimburse users.
The regulator rejected the case with prejudices in the midst of an increasing number of cases deleted under the acting CFPB Director Russell Vought. CNBC previously pointed out that the agency had agreed to never bring these claims again.