New York’s Attorney General Lateitia James speaks in New York on the New York Supreme Court on 2 October 2023, ahead of the Civil Business Fraud trial of former President Donald Trump at New York.
John Lampersky | AFP | Getty images
New York Attorney General Latitia James Lawsed on Months after the Consumer Financial Protection Bureau dismissed, the operator of the Zel Payments Network on Wednesday to allegedly enable fraud. Similar lawsuit,
Initial warning services are owners and designers of Peer-to-Pier Money Transfer Company. One Investigation The Attorney General’s office found that the company designed the Zel “without significant security facilities”, allegedly allowing users to steal more than $ 1 billion from users between 2017 and 2023.
A statement by the office said, “EWS had known from the beginning that the main features of the Zele Network have specificly susceptible to fraud, and yet it has failed to adopt basic security measures to address these magnificent flaws or apply any meaningful anti-fraud rules on its fellow banks.”
The trial alleged that the Zel became “a hub for fraud activity” as the registration process lacked verification steps and EWS and its fellow banks knew “years” that fraud was spreading and did not take action to resolve it.
James is seeking restoration and loss with a trial, in addition to a court order, which has kept the anti -fraud measures.
James said in a statement, “No one should be left to leave himself after falling into the scam.” “I am eager to get justice for new Yorkers, who were suffering due to Zel’s security failures.”
Case is uniform that CFPB Rejected in marchCFPB Lawsed on EWS and JPMorgan Chase, Bank of America And Wells Fargo – Three American banks who dominate the transactions on ZEL – to investigate fraud in December or fail to offer a reimbursement to users.
Regulator dismisses the case with bias Increasing number of cases dropped Acting under CFPB Director Russell Wout. CNBC earlier stated that the agency agreed to never bring these claims again.
