The Consumer Financial Protection Bureau (CFPB) on Friday said it has ordered federal supervision of Google Payment Corp. after determining that it meets the legal requirements for such oversight. The CFPB monitors banks, credit unions and other financial institutions, and recently finalized a rule to supervise digital payment apps. In the order, which focuses on the Google Pay app and its peer-to-peer (P2P) payment service (discontinued in the US earlier this year), the CFPB said it has “reasonable cause to determine that Google has engaged in conduct that poses risks to consumers.” Google filed a lawsuit shortly after the announcement to challenge the decision, Reuters reports.

The risks identified by the CFPB are tied to Google’s handling of erroneous transactions and fraud prevention. Based on customer complaints, the order said it appears that Google didn’t adequately investigate erroneous transfers, or adequately explain the findings of its investigations into these issues. The complaints also indicate Google didn’t do enough to prevent fraud, the order says. But, the CFPB announcement notes that the order “does not constitute a finding that the entity has engaged in wrongdoing,” nor does it “require the CFPB to conduct a supervisory examination.”

In a statement to TechCrunch, a Google spokesperson said, “This is a clear case of government overreach involving Google Pay peer-to-peer payments, which never raised risks and is no longer provided in the U.S., and we are challenging it in court.” The CFPB’s order acknowledges that Google Pay was discontinued but says this is “not a basis to refrain from designating Google for supervision,” though it could affect whether it decides to conduct an examination.