1. Key Points for August 14: Gathering in Alaska, Immigration Enforcement (ICE), Financial service Zelle, Infowars, and Air Canada Airline Incidents
Zelle Accused of Negligence in $1 Billion Fraud Case
A lawsuit filed by the New York Attorney General's office alleges that Early Warning Services, LLC (EWS)—the company operating Zelle and owned by major banks—knew for years that the platform was highly susceptible to fraud but failed to implement or enforce basic safeguards to protect users. As a result, scammers are alleged to have stolen over $1 billion through Zelle, particularly affecting consumers in New York.
Fraud Awareness and Inaction
The lawsuit claims that EWS and its partner banks were aware that scams were proliferating on Zelle for years but took insufficient steps to stop them. Internal safeguards were developed as early as 2019 but were never adopted. Even when banks reported scams, EWS allegedly failed to promptly remove fraudulent accounts or require reimbursement to victims.
Design Flaws
Zelle was launched rapidly to compete with other payment apps, prioritizing easy registration and quick transfers. This created a system "uniquely susceptible to fraud" by enabling scammers to gain access to user accounts with relative ease. EWS knew about these design weaknesses from the beginning but did not implement critical safety features.
Marketing vs. Reality
Despite operational failings, EWS promoted Zelle as a safe and secure payment service. The lawsuit asserts this marketing was misleading, given the widespread fraud and cost to consumers, thus violating New York consumer protection laws.
Scope of Losses
Zelle customers at the three largest bank owners—JPMorgan Chase, Bank of America, and Wells Fargo—lost about $870 million over seven years, according to a previous CFPB lawsuit. Overall fraud losses on the platform in the U.S. exceeded $1 billion.
Legal Claims and Relief Sought
The New York AG is seeking restitution and damages for defrauded consumers, disgorgement of profits connected to fraudulent practices, and injunctions requiring EWS to implement and maintain robust anti-fraud measures. The lawsuit aims to compel EWS to protect users and hold them accountable for past failures.
Investigation and Representation
The case is led by New York Assistant Attorneys General Chris Filburn and Christian Reigstad within the Consumer Frauds and Protection Bureau, part of the Division of Economic Justice.
This lawsuit follows the abandonment of a similar federal case filed by the Consumer Financial Protection Bureau (CFPB) in December 2024, which had alleged similar failures but was withdrawn after federal changes in early 2025.
Other News
- Taco Bell is expanding its cult-favorite drinks menu with a new flavor for Mountain Dew Baja Blast.
- Air Canada is preparing to lock out its flight attendants after they voted to go on strike this weekend, potentially causing delays and cancellations for passengers.
- President Donald Trump is urging not to make a unilateral Ukraine peace deal during his meeting with Russian President Vladimir Putin.
- The weather forecast can be checked locally for today's expectations.
- CNN is using artificial intelligence to try and create life-saving anti-venoms for snakes.
- The Texas district court judge has ruled that Infowars' parent company, Free Speech Systems, will be turned over to a court-appointed receiver who will sell its assets to pay Jones' debts.
- President Donald Trump stated that Russia will face "very severe consequences" if Putin doesn't agree to end the war, but didn't specify what those consequences would be.
- Beto O'Rourke is raising funds for Democratic members of the state legislature to prevent Republicans from passing a new US House map.
- CNN's 5 Things AM was edited and produced by Andrew Torgan.
- The 100-meter world champion sprinter issued an apology for allegedly assaulting her boyfriend in a Seattle airport.
- There have been over 1,000 deportation flights to 62 countries since President Trump's inauguration, but the process of tracking these flights has become more difficult.
Read also:
- Automobile manufacturer IM Motors reveals an extended-range powertrain akin to installing an internal combustion engine in a Tesla Model Y.
- Conflict Erupts Between Musk and Apple Over Apple Store's Neglect of Grok
- Partnership between MTN South Africa and SANTACO aims to advanced transportation systems and stimulate economic opportunities for the masses in South Africa.
- Rapid Construction of Rajasthan's 435 Megawatt Solar Power Plant in Eight Months Reduces Carbon Dioxide Emissions by Over 700,000 Tons
%2C%20Financial%20service%20Zelle%2C%20Infowars%2C%20and%20Air%20Canada%20Airline%20Incidents){kind=link}