Zelle Parent Company Sued by New York Over Alleged Lack of Safeguards from Fraud

The state of New York sued Zelle’s parent company Wednesday, accusing the firm behind the electronic payment platform of failing to adopt sufficient safeguards to protect consumers from fraud. 

New York Attorney Letitia James alleged that Early Warning Services, a financial technology company owned by the nation’s largest banks, hastily launched Zelle to compete with emerging payment platforms, like Venmo and PayPal. 

As a result, she argues, Zelle offered more limited security protocols and made the network “an obvious conduit for fraudulent activity.”  

Read more at The Hill