NY’s Attorney General Picks Up Zelle Fraud Fight From CFPB

New York’s attorney general is picking up an effort dropped by the Trump administration’s Consumer Financial Protection Bureau, accusing a bank-owned financial-technology company of allowing fraud to run rampant on the Zelle peer-to-peer payments network.

New York Attorney General Letitia James sued Early Warning Services LLC on Wednesday in New York state court, claiming that EWS’s rush to market “made the Zelle network an obvious conduit for fraudulent activity.”