The New York Attorney General Letitia James speaks before the Supreme Court of New York in New York City before President Trump's former fraud procedure of President Donald Trump on October 2, 2023.
John Lamparski | AFP | Getty pictures
The New York Attorney General Letitia James sued the operator of the Payment Network cell on Wednesday and claimed that he had enabled fraud by stealing over $ 1 billion of users between 2017 and 2023.
In a press release, James' office announced that his investigation found that the early warning services, the owner and designer of the peer-to-peer transfer company, was designed “without critical security features”. In the press release it was found that the lawsuit against EWS in March will follow a similar reduction in consumer financial office.
“EWS knew from the start that important features of the cell network clearly made it susceptible to fraud, and it was possible to adopt basic protective measures in order to tackle these blatant mistakes or to enforce a sensible anti-FR-RAUD rules for his partner banks,” said James' office in the publication.
In the lawsuit it is claimed that cells became a “hub for fraudulent activities” because the registration process had no review steps and EWS and its partner banks knew for years that the fraud spread and did not take them to solve them in accordance with the press release.
After a refund and damage, James requests in addition to a saving of court, which stipulates that cell has taken anti-frags measures.
“Nobody should let themselves be taken care of after falling victim to a fraud,” said James in the press release. “I look forward to getting justice for the New Yorkers who have suffered from cell security errors.”
In a statement, a cell spokesman called the lawsuit a “political stunt to generate press” and a “imitator” of the CFPB lawsuit.
“Despite the claims of the Attorney General, they did not carry out a cell examination,” said the spokesman. “If you had carried out an investigation, you would have learned that more than 99.95 percent of all cell transactions are completed without fraud or fraud – which is leading the industry.”
The CFPB sued EWS in December and JPmorgan ChasePresent Bank of America And Wells Fargo – The three US banks that dominate cell transactions – and claimed that companies had not examined fraud or offered reimbursement to users.
The regulatory authority has fallen in a growing number of cases that it rejected it as part of the acting CFPB Director Russell Vought.