The Consumer Financial Protection Bureau (CFPB) alleged that various factors, including Zelle's relatively 'limited identification methods', allowed fraud to run rampant.

The government agency sued Zelle’s operating company and four of its partner banks (JPMorgan Chase, Bank Of America and Wells Fargo). The CFPB says the service hasn’t done enough to protect consumers from fraud.

The U.S. Consumer Financial Protection Bureau said on Friday it filed a lawsuit against JPMorgan Chase, Bank of America and Wells Fargo for failing to protect consumers from alleged "widespread fraud" on payments platform Zelle.

Some banks and banking trade groups are suing the Consumer Financial Protection Bureau over a finalized rule that limits overdraft fees banks can charge

Three of the biggest U.S. banks are being sued by a top financial regulator that says they allowed fraud to run rampant on the payments platform Zelle and failed to put safeguards in place to protect users.

The CFPB is suing the fintech firm Early Warning Services — the bank-owned company that runs Zelle — as well as JPMorgan Chase, Bank of America, and Wells Fargo, claiming that customers of the banks lost more than $870 million over Zelle's seven-year existence.

The CFPB has filed a lawsuit against Zelle and three major US banks over allegations of failing to adequately protect consumers from fraud.