New York Attorney General Letitia James sued Early Warning Services, a company owned and controlled by a group of the largest banks.

An investigation by the attorney general's office revealed that Zelle lacks safety features that would have protected users from scammers, who have stolen over $1 billion between 2017 and 2023.

NY Attorney General claims Zelle lacked critical safeguards that led to those huge fraud losses. Zelle called the suit ‘a political stunt.’