New York Attorney General Latitia James filed a case against initial warning services, or EWS, alleging that the original company of the Zel failed to implement some security measures, which allowed “millions of consumers dreadful damage” and permission to steal more than 2023 to $ 1 billion from 2017 to 2023.
EWS, which is Co -ownership By Bank of America, Capital One, JP Morgan Chase, PNC Bank, Trust, US Bank and Wales Fargo, Launched Zele App in 2017. In its beginning, Zele Said According to the company, the digital payment network will be a “fast, safe way” to people to send and receive the safety of their financial institution.
By 2024, the app has 151 million users, according to Zele Website,
Push to launch Zele led the design oversights, which “made the network a clear drain for fraud activity,” trial Blame. The alleged flaws include a quick registration process and a lack of verification of the zel, which James claims that it became easier for scammers to infiltrate the service.
The limited information shown to the customers during the transaction allowed fraudsters to use false or fraud email addresses to trick consumers, he said.
The New York AG’s office claimed in its statement, “EWS had known from the beginning that the key features of the Zele Network have specificly susceptible to fraud, and yet it failed to adopt basic safety measures to address these magnificent defects or apply any meaningful anti-fraud rules on its fellow banks.”
The trial also alleged that the EWS failed to implement the rules to prevent fraud, even though it was known that his fellow banks were violating them.
In a statement to CBS News, a Jail spokesman called the trial “political stunt” and said it was a “copy” of a similar trial. Consumer financial protection bureau Filed in DecemberWhich was rejected in March. The case allegedly failed to protect EWS consumers from widespread fraud.
The lawsuit searches for restoration and damage to the fraud-affected new Yorkers on Zele, as well as a court order requires the company to maintain anti-fraud measures.
