Manhattan Judge Rejects Early Warning Services' Bid to Dismiss $1 Billion Zelle Fraud Lawsuit

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A Manhattan judge rejected Early Warning Services' attempt to have the $1 billion fraud lawsuit brought by New York Attorney General Letitia James dismissed. New York Supreme Court Justice Phaedra Perry-Bond ruled that James had sufficiently pleaded claims against Early Warning Services, which operates Zelle and is owned by Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo. James alleges that inadequate safeguards allowed fraudsters to steal more than $1 billion from consumers between 2019 and 2022 through account takeovers, impersonation scams and fraudulent transactions. The ruling allows the attorney general's claims to advance to the discovery phase. Early Warning Services intends to appeal.
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