NY attorney general sues Zelle’s parent company, alleging the payment service enabled widespread fraud

On Wednesday, a lawsuit against the Public Prosecutor in New York was filed a lawsuit against the parent company of Zelle, after months of abandoning the FBI’s financial protection office for a similar case because the Trump administration was wandering in the agency.

The Prosecutor Litia James, a democratic, filed a lawsuit against early warning services in the New York State Court, claiming that the company, owned by a group of American banks, has failed to protect users from fraud by not including critical safety features in Zel design.

The Financial Consumer Protection Office earlier this year brought down a similar case after President Donald Trump, the agency’s leader, has almost arrested all the office’s work, closed its headquarters and moved to the shooting of many of its workers.

In a statement, the James office indicated that his lawsuit was filed after the Consumer Protection Office abandoned his prayers after a “change in the federal administration.”

“No one should leave a motivation for themselves after a victim of fraud,” James said in a statement. “I look forward to achieving justice for the New York residents who suffered due to Zel security failures.”

James was a leading opponent of Trump, a Republican, and he sued him dozens of times. Last week, the Associated Press and other news agency reported that the Ministry of Justice had summoned James as part of the investigation of whether Trump’s civil rights were violated, according to people familiar with the matter.

The James case against early warning services claimed that Zel, which allows users to send and receive funds near the money, failed to include adequate verifications. Her office said that the fraudsters were able to reach the accounts of peoples or deceive users to send money to false accounts that have been launched as official companies.

In one of the cases that the Public Prosecutor’s Office was martyred, a Zelle user received a call from a person demonstrating as an employee at the CON Edison company who told the user that electricity will be stopped unless he sent them money via Zelle. James office said that the user then converted about $ 1500 to the Zelle account called “Coned Billing” and then realized that he was deceived, but his bank told him that he could not recover his money.

In a statement issued by a spokesman, Zeel called James’s lawsuit “a political trick to generate journalism, not progress.”

“The public prosecutor must focus on difficult facts, stop criminal activity and adhere to the law, not overcome allegations,” the statement said.