The lawsuit alleges that after receiving repeated reports of fraud, EWS chose not to adopt basic safety measures that it had the technology and know-how to do. As a result, the lawsuit claims, consumers lost over $1 billion while the company profited from the app's rapid growth.

New York Attorney General Letitia James says banks have ignored major security problems.

Attorney General James claims EWS violated New York law and is asking for restitution and damages for all New Yorkers harmed by scams on Zelle. “I look forward to getting justice for the New Yorkers who suffered because of Zelle’s security failures,” James said in the press release.