Zelle fraud under fire as New York sues the payment app’s creators over $1 billion in scam losses. Here's what users need to know.

The lawsuit in a New York state court in Manhattan followed the US Consumer Financial Protection Bureau's decision in March to drop a similar case.

The lawsuit alleges that after receiving repeated reports of fraud, EWS chose not to adopt basic safety measures that it had the technology and know-how to do. As a result, the lawsuit claims, consumers lost over $1 billion while the company profited from the app's rapid growth.