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 lawsuit alleges that Early Warning Services, Zelle's parent, failed to implement safeguards, enabling fraudsters to steal more than $1 billion.