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Business News

Zelle in the Hot Seat: $1B Fraud Allegations Land in Court

Zelle is back in the headlines, and not for a shiny new feature. New York Attorney General Letitia James just sued the bank-backed payment app, claiming it turned a blind eye to fraud for years, letting scammers swipe over $1 billion from consumers. The lawsuit accuses Zelle and its owner, Early Warning Services (plus its seven megabank parents), of ignoring obvious safety fixes while assuring customers the platform was “secure.” From fake utility shut-off threats to non-existent puppies, the scams read like a con artist’s highlight reel. Zelle insists it’s a victim too saying 99.95% of transactions are fraud-free and calls the suit a political PR move. Still, James wants tougher safeguards, restitution, and a reality check for the app that promised to be the safer alternative to cash, only to feel (for some) like handing your wallet to a stranger with a smile.

PPI Pops Ahead of Powell’s Jackson Hole Moment

July’s producer prices came in hot, serving the Fed an unplanned inflation appetizer before Jay Powell’s big Jackson Hole speech. The PPI jumped 0.9% month-over-month blowing past the 0.2% forecast and rose 3.3% annually, the fastest since February. Core PPI, stripping out food, energy, and trade, surged 0.6%, marking its biggest gain since March 2022. The takeaway? Businesses aren’t just eating tariff costs they’re increasingly plating them up for consumers. Markets flinched, with futures dipping as traders recalibrated rate-cut expectations. While the Fed is still widely expected to cut rates in September, this surprise spike makes Powell’s upcoming remarks feel a little more like walking a monetary tightrope.

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