The New York Attorney General, Letitia James, has filed a lawsuit against the parent company of Zelle, claiming that the payment service enabled widespread fraud which reportedly resulted in over $1 billion in consumer losses. The suit highlights significant security lapses and a lack of effective anti-fraud safeguards within the platform, which allegedly left users vulnerable to scams. This legal action follows a similar suit dropped by the Consumer Financial Protection Bureau (CFPB), and aims to hold Zelle accountable for its alleged failures in protecting consumers from fraud.