New York Attorney General Letitia James sued Early Warning Services LLC on Wednesday, alleging the company’s Zelle money-transfer network enabled scammers to steal more than $1 billion from consumers between 2017 and 2023. The complaint, filed in New York State court, says Zelle’s rapid sign-up process, limited recipient information and lack of critical safety features allowed fraudulent accounts to flourish and left victims with little chance of recovering lost funds. James contends EWS and the seven banks that own it—Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo—were aware of mounting fraud but resisted basic safeguards and sometimes ignored customer complaints. The suit seeks restitution and damages for affected New Yorkers and a court order requiring stronger verification checks, transaction monitoring and consumer reimbursement rules. The action revives claims the U.S. Consumer Financial Protection Bureau abandoned in March after the Trump administration curtailed the agency’s enforcement work. By moving at the state level, James is attempting to impose protections that would apply to Zelle transactions originating in New York despite the earlier federal pullback. EWS called the lawsuit “a political stunt,” saying scams begin when criminals trick users rather than exploit the platform itself, and noting that more than 99.95 % of Zelle payments occur without reported fraud. The company warned that holding it liable could raise costs for consumers. The banks that own EWS were not named as defendants.