(Bloomberg) — The Consumer Financial Protection Bureau sued JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co., along with Zelle’s parent company, saying the companies rushed to market a peer-to-peer payment network by first implementing appropriate consumer protections.

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“By failing to provide adequate security precautions, Zelle became a goldmine for fraudsters while victims were often left to fend for themselves,” CFPB Director Rohit Chopra said in a statement Friday.

A Zelle spokesman said the CFPB’s actions were legally and factually flawed and that the timing of this lawsuit appears to be driven by political factors that have nothing to do with Zelle.

According to a lawsuit filed in the U.S. District Court for the District of Arizona, the CFPB also alleged that fraud complaints were not addressed and consumers were largely denied compensation when they visited their bank.

Representatives from JPMorgan and Bank of America had no immediate comment. A Wells Fargo representative declined to comment.

Both JPMorgan and Wells Fargo previously announced that the consumer agency was investigating their handling of Zelle transactions. JPMorgan also said earlier this year that it was evaluating its response to the government audit, including possible litigation.

Consumer payment fraud through Zelle and Venmo previously caught the attention of Senate Democrats, including Elizabeth Warren. Early Warning Services, the company that operates Zelle, is owned by seven of the largest U.S. banks: the three named in the lawsuit, as well as Capital One Financial Corp., PNC Financial Services Group Inc., Truist Financial Corp. and US Bancorp.

Zelle competes with PayPal Holdings Inc.’s Venmo and Block Inc.’s Cash App, two of the most popular peer-to-peer payment apps in the United States.

– With assistance from Hannah Levitt and Katherine Doherty.

(Updates with additional background and context)

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