Get the latest tech news

New York sues Zelle, says security lapses led to $1 billion consumer fraud losses. PAYWALL-FREE


Business & Economy - By Jonathan StempelNEW YORK (Reuters) -Zelle was sued on Wednesday by New York Attorney General Letitia James, who said the electronic payment platform's

The result was “rampant” fraud that Zelle sometimes refused to address even after it occurred, despite its assurances it was a safe alternative to cash and checks and “backed by the banks, so you know it’s secure,” the complaint said. In a statement, Zelle said scams start when criminals trick people into sending money, rather than on the platform itself, and holding it liable could lead to higher fees for consumers. James sued Capital One in May for allegedly cheating savings depositors out of millions of dollars in interest, and in June settled claims against MoneyGram over remittance transfer lapses.

Get the Android app

Or read this on r/technology

Read more on:

Photo of New York

New York

Photo of paywall

paywall

Photo of Zelle

Zelle

Related news:

News photo

Meta's flirty AI chatbot invited a retiree to New York

News photo

Meta’s flirty AI chatbot invited a retiree to New York. He never made it home.

News photo

New York sues Zelle, says security lapses led to $1 billion consumer fraud losses