Zelle was sued on Wednesday by New York Attorney General Letitia James, who said the electronic payment platform’s refusal to adopt critical safety features enabled fraudsters to steal more than $1 billion from consumers.

Attorney general targets Zelle over alleged fraud James said the lawsuit follows an investigation by the attorney general's office that found scammers stole more than $1 billion from users between 2017 and 2023 through the platform.

Attorney General Letitia James seeks justice for New Yorkers affected by alleged Zelle fraud, demanding restitution and stronger security measures from banks.