New York Attorney General Letitia James has accused Citibank of failing to prevent fraudulent wire transfers even after customers reported scams and requested their accounts be frozen.
Lack of Effort to Alert Other Banks
According to James, Citibank allegedly makes “no effort” to notify other banks about wire fraud in real time. The bank reportedly only attempts to stop transfers if customers explicitly ask them to contact the institutions receiving the stolen funds.
Costly Lax Security
James claims that Citibank’s “lax security procedures” have resulted in millions of dollars in losses for customers. She alleges that the bank has failed to implement adequate security measures, respond promptly to fraud alerts, and compensate victims for their losses.
Citibank’s Response
Citibank has dismissed the lawsuit as “misguided” and argued that it follows the law. The bank has also warned that the lawsuit could disrupt industry practices. James is expected to respond to Citibank’s motion to dismiss by May 17th.
