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.

New York Attorney General Letitia James filed suit Wednesday against the parent company of Zelle for allowing "massive amounts of fraud" on the platform.