NY’s Attorney General Picks Up Zelle Fraud Fight From CFPB (2)

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.”

“The Zelle network’s emphasis on immediate funds availability facilitated quick getaways and deprived consumers of any chance to recover stolen funds,” according to the complaint. “And the ability to seamlessly ...