"NEW YORK - New York Attorney General Letitia James today sued Early Warning Services, LLC (EWS), a company owned and controlled by a group of the largest banks in the United States that was tasked with developing and operating the electronic payment platform Zelle, for failing to protect its users from massive amounts of fraud. An investigation by the Office of the Attorney General (OAG) revealed that EWS designed Zelle without critical safety features, allowing scammers to easily target users and steal over $1 billion between 2017 and 2023."
"EWS is a financial technology company owned and controlled by a group of the country's largest banks, including JPMorgan Chase, Bank of America, Capital One, and Wells Fargo. Those banks tasked EWS with hastily launching an electronic payment platform to compete with payment apps like Venmo, PayPal, and CashApp, which were not controlled by banks. In their rush to launch, EWS prioritized attracting new users through a simple registration process and quick transfers that left consumers vulnerable to scammers"
""No one should be left to fend for themselves after falling victim to a scam," said Attorney General James. "I look forward to getting justice for the New Yorkers who suffered because of Zelle's security failures.""
New York Attorney General Letitia James sued Early Warning Services (EWS) for failing to protect Zelle users from widespread fraud. The Office of the Attorney General found EWS built Zelle without critical safety features, enabling scammers to steal over $1 billion from 2017 to 2023. EWS reportedly knew key network features increased fraud risk but did not implement basic safeguards or enforce anti-fraud rules with partner banks. EWS is owned and controlled by major banks that rushed Zelle's launch to compete with nonbank apps, prioritizing simple registration and instant transfers that left consumers vulnerable. The suit seeks restitution, damages, and mandated anti-fraud measures.
Read at DataBreaches.Net
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