Judge rejects Zelle bid to dismiss lawsuit over fraud losses

A US judge has denied Zelle's attempt to throw out a lawsuit brought by New York Attorney General Letitia James, who claims the widely used peer-to-peer payment service didn't do enough to safeguard users from widespread fraud. This decision means the case will proceed, potentially exposing Zelle to significant liability and scrutiny over its security measures. The outcome could have broader implications for how other payment services are regulated and held accountable for fraud prevention.