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New York sues Citibank for alleged failure to reimburse fraud victims



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Citi’s financial institution department within the central enterprise district of Singapore on Feb. 12, 2018.

Ore Huiying | Bloomberg | Getty Pictures


New York Lawyer Normal Letitia James sued Citibank for allegedly failing to guard and reimburse victims of digital fraud, in line with a Tuesday launch.

The swimsuit claims that Citi doesn’t have robust protections in place to forestall unauthorized account takeovers, misleads victims of fraud and illegally denies reimbursements. The lawyer normal’s workplace stated the alleged failure on Citi’s half has price New York account holders hundreds of thousands of {dollars}, and in some instances, their total life financial savings.


“Banks are alleged to be the most secure place to maintain cash, but Citi’s negligence has allowed scammers to steal hundreds of thousands of {dollars} from hardworking folks,” James stated in an announcement. “Many New Yorkers depend on on-line banking to pay payments or save for giant milestones, and if a financial institution can’t safe its clients’ accounts, they’re failing of their most simple obligation.”

The lawsuit contains particular individuals who had 1000’s of {dollars} stolen from their accounts and stated the financial institution didn’t reimburse them.


In an announcement, Citi stated the financial institution “works extraordinarily laborious” to forestall threats and help clients who turn into victims of fraud.

“Banks are usually not required to make clients entire when these clients comply with criminals’ directions and banks can see no indication the purchasers are being deceived. Nevertheless, given the industry-wide surge in wire fraud over the past a number of years, we have taken proactive steps to safeguard our shoppers’ accounts with main safety protocols, intuitive fraud prevention instruments, clear insights concerning the newest scams, and driving shopper consciousness and training,” the corporate stated in an announcement. “Our actions have diminished shopper wire fraud losses considerably, and we stay dedicated to investing in fraud prevention measures to assist our shoppers safe their accounts in opposition to rising threats.”


James alleged within the lawsuit that Citi should reimburse victims of fraud underneath the Digital Fund Switch Act.

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