The Consumer Financial Protection Bureau (CFPB) has sued JP Morgan, Bank of America, and Wells Fargo for failing to protect consumers from “widespread fraud” taking place on payment network Zelle.

Zelle is the most widely available peer-to-payment network in America. It allows near-instant electronic money transfers through linked email addresses or US-based mobile phone numbers, known as “tokens.”

The network’s operator Early Warning Services has also been sued by the US consumer protection agency.

According to the Bureau, the three banks alongside Early Warning Services rushed the network to market to compete against growing payment apps such as Venmo and CashApp, without implementing effective consumer safeguards.

It said that customers of the three banks have lost more than $870 million over the network’s seven-year existence due to these failures.

The lawsuit describes how “hundreds of thousands of consumers” filed fraud complaints and were “largely denied assistance,” with some being told to contact the fraudsters directly to recover their money.

The three banks also allegedly failed to properly investigate complaints or provide consumers with legally required reimbursement for fraud and errors.

Under the Consumer Financial Protection Act, the CFPB has the authority to take action against institutions violating consumer financial protection laws, including engaging in unfair, deceptive, or abusive acts and practices.

The regulator said it is seeking to stop the alleged unlawful practices, secure redress and penalties, and obtain other relief.

Its lawsuit seeks to halt unlawful conduct, obtain redress for harmed consumers, and obtain a civil money penalty, which would be paid into the CFPB’s victims relief fund, and secure other appropriate relief.

“The nation’s largest banks felt threatened by competing payment apps, so they rushed to put out Zelle,” said CFPB director Rohit Chopra. “By their failing to put in place proper safeguards, Zelle became a gold mine for fraudsters, while often leaving victims to fend for themselves.”

FStech has approached the three banks for comment.

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