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The
Consumer Financial Protection Bureau earlier this year dropped a
similar case after President Donald Trump fired the agency's
leader and his administration halted nearly all the bureau's
work, closed its headquarters and moved to fire many of its
workers.
In a statement, James' office noted that its suit was filed
after the Consumer Financial Protection Bureau abandoned its
lawsuit following a “change in the federal administration.”
“No one should be left to fend for themselves after falling
victim to a scam,” James said in a statement. “I look forward to
getting justice for the New Yorkers who suffered because of
Zelle’s security failures.”
James has been a leading antagonist of Trump, a Republican, and
has sued him dozens of times. Last week, The Associated Press
and other news outlets reported that the Justice Department has
subpoenaed James as part of an investigation into whether she
violated Trump's civil rights, according to people familiar with
the matter.
James' case against Early Warning Services alleged that Zelle,
which allows users to send and receive near-instant money
transfers, failed to include adequate verification processes.
Her office said scammers were able to access peoples' accounts
or trick users into sending money to bogus accounts that posed
as official businesses.
In one instance cited by the attorney general's office, a Zelle
user got a call from someone posing as an employee of the
utility company Con Edison who told the user that his
electricity was going to be shut off unless he sent them money
through Zelle. The user then transferred about $1,500 to a Zelle
account named “Coned Billing" and then realized he had been
scammed but was told by his bank that he could not get his money
back, James' office said.
In a statement issued through a spokesperson, Zelle called
James' lawsuit “a political stunt to generate press, not
progress.”
“The Attorney General should focus on the hard facts, stopping
criminal activity and adherence to the law, not overreach and
meritless claims,” the statement said.
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