United States of America: Attorney General of the State of New York filed lawsuit against Early Warning Services over fraudulent practices in Zelle payment network

On 12 August 2025, the Attorney General of the State of New York filed a lawsuit against Early Warning Services, LLC (EWS), operator of the Zelle payment network. The lawsuit alleges fraudulent practices and specified that EWS operates Zelle, which processes hundreds of billions of dollars annually through over 2,200 participating banks. The complaint alleges that EWS created an atmosphere conducive to fraud by designing a payment system highly susceptible to fraudulent activity and despite this, the company marketed Zelle as safe and secure. It was highlighted that consumers lost hundreds of millions of dollars to fraud from 2019-2022. EWS had developed basic network safeguards in July 2019, but only fully implemented them in 2023. After implementation, fraudulent losses decreased significantly even as transaction volumes grew. The Attorney General seeks injunctive relief requiring EWS to maintain antifraud safeguards. The lawsuit also seeks restitution, damages, and an accounting of affected New York consumers.