Zelle must face New York attorney general's lawsuit over fraud, judge rules

A New York judge allowed AG Letitia James's lawsuit against Zelle to proceed, saying allegations that safety lapses enabled more than $1 billion in consumer theft are sufficient to move forward.
Zelle—owned by seven big U.S. banks (Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo)—says it will appeal and denies the claims.
The suit argues Zelle marketed itself as secure while delaying basic fraud protections until 2023; a similar CFPB case was dropped earlier this year.