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Kiplinger
Kiplinger
Business
Rachael Green

Lawsuit Claims Zelle Security Lapses Cost Over $1 Billion in Fraud: What You Need to Know

Zelle Lawsuit EWS New York
Zelle logo on a smartphone screen.

In a lawsuit filed this week, New York Attorney General Letitia James claimed that over $1 billion was stolen from Zelle users via fraud between 2017 and 2023.

The Consumer Financial Protection Bureau (CFPB) filed a lawsuit in December 2024 alleging the same thing, but when that lawsuit was dropped in March 2025, New York's attorney general decided to file a suit of her own against the digital payment service to seek compensation for New York consumers.

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