Customers across the three banks have lost a combined $870 million since Zelle launched in 2017, regulators claim.

The Consumer Financial Protection Bureau sued JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co. along with the parent company of Zelle alleging the firms rushed a peer-to-peer payment network to market without adequate consumer protections.

In addition to exposing customers to fraud, the banks violated federal laws for electronic fund transfers, according to the suit. It said Bank of America and Chase sent customers’ transfers to the wrong recipient because of errors and inaccuracies in Zelle’s network directory.

The CFPB is suing the fintech firm Early Warning Services — the bank-owned company that runs Zelle — as well as JPMorgan Chase, Bank of America, and Wells Fargo, claiming that customers of the banks lost more than $870 million over Zelle's seven-year existence.

A federal regulator sued JPMorgan Chase, Wells Fargo and Bank of America on Friday, claiming the banks failed to protect hundreds of thousands of consumers from rampant fraud on the popular payments network Zelle.