Zelle Gets Sued For Fraud

New York’s attorney general is suing Zelle over a lack of safety features that allowed scammers to steal over $1 billion from users. The lawsuit claims that Zelle’s parent company, Early Warning Services, failed to protect users from fraud by not implementing necessary safeguards. Attorney General Letitia James alleges that Zelle knew about the platform’s vulnerabilities but did not take action to prevent fraud. The case comes after a similar federal lawsuit was dropped earlier this year. Zelle has dismissed the lawsuit as a “political stunt.”

The New York AG is suing Zelle, accusing the popular electronic payment service of failing to protect consumers from more than $1B in fraud. @RhiannonAlly has the details. pic.twitter.com/Rq8jMQSFrx

— Good Morning America (@GMA) August 14, 2025