Zelle Fraud Frenzy: New York Sues Over Scammer Paradise!
New York State is suing Zelle, claiming banks knew about rampant fraud on the platform but did nothing. Meanwhile, Netflix isn’t emailing VP job offers, and scammers are targeting crypto victims with fake lawyers. Canada’s Parliament got hacked, and Kryptos’ solution is up for auction, but the secrets might remain locked away.
Hot Take:
In a world where Zelle was supposed to be the superhero of peer-to-peer payments, it looks like it forgot to wear its cape—or even a shield. This lawsuit shows that sometimes, even your bank can’t protect you from the evil forces of scammers. Maybe EWS should have invested in a nice, thick pair of anti-fraud glasses!
Key Points:
– New York State has filed a lawsuit against Early Warning Services (EWS), the company behind Zelle, for allegedly neglecting to implement critical security features.
– The lawsuit claims that over $1 billion was stolen from users due to inadequate fraud prevention measures.
– Zelle’s rapid payment feature left fraud victims without any restitution, with banks often stating there was no way to retrieve stolen funds.
– The lawsuit asserts that EWS failed to adopt safeguards even after fraud was reported.
– Elected officials and federal investigations have previously raised concerns about fraud on Zelle.