10:15 AM EDT, 08/14/2025 (MT Newswires) -- (Updates with statement from Early Warning Services in the fifth and sixth paragraphs.)

New York Attorney General Letitia James on Wednesday sued Zelle payments network operator Early Warning Services, alleging that it failed to shield its users from "massive amounts of fraud."

Early Warning Services designed Zelle "without critical safety features," paving the way for scammers to target users and steal more than $1 billion between 2017 and 2023, James' office said in a statement.

James is seeking restitution and damages for impacted customers, as well as a court order mandating Zelle maintain anti-fraud measures required to protect its users.

Early Warning Services is owned and controlled by a group of some major US banks, including JPMorgan Chase ( JPM ) , Bank of America ( BAC ) , Capital One (COF), and Wells Fargo ( WFC ) , according to the statement.

In an emailed statement to MT Newswires, Early Warning Services called the lawsuit a "political stunt to generate press" and said that the attorney general did not conduct an investigation on Zelle.

"Had they conducted an investigation, they would have learned that more than 99.95 percent of all Zelle transactions are completed without any report of scam or fraud - which leads the industry. The Attorney General should focus on the hard facts, stopping criminal activity and adherence to the law, not overreach and meritless claims," Early Warning Services said.

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