Welcome to the Tech Brew Ride Home for Thursday, August 14th, 2025. I'm Brian McCullough today. New York is suing Zell. Another IPO pop has me raising my eyebrows again. Maybe perplexity really was serious, at least about getting a browser. Does Apple want to make basically that Pixar lamp and AI has broken the hiring

process so much that some companies are resorting again to in-person interviews?

Here's what you miss today in the world of tech.

The state of New York is suing Zell, claiming that security lapses led to $1 billion in consumer fraud losses.

The U.S. Consumer Financial Protection Bureau dropped a similar case against Zell back in March.

Quoting Reuters,

Zell 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.

Zell was launched in 2017 and competes with apps such as PayPal's Venmo and Block's cash app.

Its parent, early warning services is owned by seven large U.S. banks.

Bank of America, Capital One, J.P. Morgan Chase, P.N.C., Tru seven large U.S. banks, Bank of America, Capital One, J.P.

Morgan Chase, PN.N.C., Truist, U.S. Bank, and Wells Fargo. James said Zell's parent and the

banks knew for years that the platform was vulnerable to fraudsters but resisted basic

safeguards with the banks sometimes ignoring customer complaints while Zell let fraudsters stay on the

platform. The result was, quote, rampant fraud that Zell sometimes refused to address even after it

occurred. Despite its assurances, it was a safe alternative to cash and checks and, quote,

backed by the banks so you know it's secure, the complaint said. In a statement, Zell said

scams start when criminals trick people into sending money rather than on the platform itself

and holding it liable could lead to higher fees for consumers. Zell also said more than 99.95%

of transactions that handles are completed without reported fraud leading the industry.

This lawsuit is a political stunt to generate press, not progress, Zell said.

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