New York sues Zelle, says security lapses led to ‘rampant’ consumer fraud

(Reuters) — 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.

The lawsuit in a New York state court in Manhattan followed the U.S. Consumer Financial Protection Bureau’s decision in March to drop a similar case.

That agency has ended most enforcement activity following U.S. President Donald Trump’s return to the White House…

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