New York Attorney General Letitia James says the company, co-owned by major U.S. banks, failed to protect users. The company calls the suit "a political stunt."

New York Attorney General Letitia James on Wednesday sued Early Warning Services (EWS), which operates Zelle, alleging the electronic money-transfer service fails to protect its users from “massive amounts of fraud.

Electronic payment platform Zelle has been sued by New York Attorney General Letitia James over allegations that its lack of critical safety features has enabled scammers to steal over $1 billion from US consumers.