Zelle\u00a0said scams start <\/a>when criminals trick people into sending money, rather than on the platform itself, and holding it liable could lead to higher fees for\u00a0consumers.<\/p>\nConsumer options to send and request money via Zelle on a mobile banking app. AP<\/p>\n
Zelle\u00a0also said more than 99.95% of transactions it handles are completed without reported\u00a0fraud, leading the industry.<\/p>\n
\u201cThis lawsuit is a political stunt to generate press, not progress,\u201d\u00a0Zelle\u00a0said. \u201cThe Attorney General should focus on the hard facts, stopping criminal activity and adherence to the law, not overreach and meritless claims.\u201d<\/p>\n
Early Warning Services is based in Scottsdale, Arizona.<\/p>\n
The seven banks were not named as defendants.<\/p>\n
PUPPY, UTILITY BILL SCAMS<\/p>\n
James said typical scams involved hacking into users\u2019 accounts and making unauthorized transfers, convincing users to send money for nonexistent goods and services, and impersonating banks, government offices and utilities.<\/p>\n
According to the complaint, one victim was told his electricity would be shut off unless he paid Con Edison $1,477 via\u00a0Zelle, to an account named \u201cConed Billing.\u201d<\/p>\n
JP Morgan Chase is one of the large US banks that owns Zelle parent company, Early Warning Services. Christopher Sadowski<\/p>\n
Another victim said Chase and\u00a0Zelle\u00a0wouldn\u2019t help him after he sent $2,600 in two installments via Zelle\u00a0to buy a puppy, and realized he had been scammed when the purported seller demanded more money.<\/p>\n
James said it wasn\u2019t until 2023, after the CFPB and several members of Congress began probes, that\u00a0Zelle\u00a0adopted \u201cbasic\u201d safeguards it had proposed four years earlier.<\/p>\n
\t\t\t\t\t\t\tCharlie Gasparino has his finger on the pulse of where business, politics and finance meet\t\t\t\t\t\t<\/p>\n
\n\t\t\t\t\t\t\tSign up to receive On The Money by Charlie Gasparino in your inbox every Thursday.\t\t\t\t\t\t<\/p>\n
\t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n
While reported\u00a0fraud\u00a0losses\u00a0plummeted, the safeguards were \u201ctoo little too late\u201d for\u00a0consumers who had lost money, and despite those safeguards\u00a0Zelle\u00a0still facilitates \u201csubstantial\u00a0fraudulent activity,\u201d the complaint said.<\/p>\n
\u201cNo one should be left to fend for themselves after falling victim to a scam,\u201d James said in a statement.<\/p>\n
Wells Fargo Co. headquarters in San Francisco, California. REUTERS<\/p>\n
The lawsuit seeks to require\u00a0Zelle\u00a0to beef up anti-fraud\u00a0protections, and pay restitution and damages to defrauded\u00a0New\u00a0Yorkers.<\/p>\n
James\u00a0sued Capital One\u00a0in May for allegedly cheating savings depositors out of millions of dollars in interest, and in June\u00a0settled\u00a0claims against MoneyGram\u00a0over remittance transfer\u00a0lapses.<\/p>\n
The CFPB abandoned similar cases earlier in the year.<\/p>\n","protected":false},"excerpt":{"rendered":"Zelle\u00a0was sued on Wednesday by\u00a0New\u00a0York\u00a0Attorney General Letitia James, who said the electronic payment platform\u2019s refusal to adopt critical…\n","protected":false},"author":3,"featured_media":144755,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5122],"tags":[5229,49772,8392,64,16672,336,24980,5248,46323,405,403,5226,5225,5228,5227,67,586,132,5230,68,2969],"class_list":{"0":"post-144754","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-america","9":"tag-attorney-general","10":"tag-banking","11":"tag-business","12":"tag-jpmorgan-chase","13":"tag-lawsuits","14":"tag-letitia-james","15":"tag-metro","16":"tag-mobile-banking","17":"tag-new-york","18":"tag-new-york-city","19":"tag-newyork","20":"tag-newyorkcity","21":"tag-ny","22":"tag-nyc","23":"tag-united-states","24":"tag-united-states-of-america","25":"tag-unitedstates","26":"tag-unitedstatesofamerica","27":"tag-us","28":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115026493738509012","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/144754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=144754"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/144754\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/144755"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=144754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=144754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=144754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}