New York Attorney General Letitia James says banks have ignored major security problems.

Zelle was sued on Wednesday by New York Attorney General Letitia James, who said the electronic payment platform's refusal to adopt critical safety features enabled fraudsters to steal more than $1 billion from consumers.

The state of New York sued Zelle’s parent company Wednesday, accusing the firm behind the electronic payment platform of failing to adopt sufficient safeguards to protect consumers from fraud.