New York Attorney General Letitia James sued Early Warning Services LLC, the bank-owned operator of the Zelle peer-to-peer payments network, accusing the company of failing to install basic security features and allowing scammers to steal more than $1 billion from users between 2017 and 2023. The civil complaint was filed Wednesday in New York State Supreme Court in Manhattan. James alleges Early Warning and its seven owner banks—Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo—knew the platform’s rapid-signup design and limited recipient information made it “an obvious conduit for fraudulent activity,” yet resisted adding safeguards or reimbursing victims. The suit seeks restitution for New Yorkers, unspecified damages and a court order compelling the company to tighten anti-fraud controls. The action revives claims the U.S. Consumer Financial Protection Bureau abandoned in March after the agency curtailed enforcement under President Donald Trump. It also follows James’s recent suits and settlements targeting alleged consumer-finance abuses at Capital One and MoneyGram. Early Warning said the lawsuit is “meritless,” noting that more than 99.95 percent of Zelle transactions are completed without a fraud report and warning that expanded liability could raise costs for consumers. The Scottsdale, Arizona-based firm added that none of its owner banks were named as defendants.