AG: Bank’s Issues Cost New Yorkers Millions, Entire Lifesavings
A bank used by many New York State residents is being sued for its "lax security" that cost New Yorkers "millions of dollars, and in some instances, their entire lifesavings."
New York Attorney General Letitia James is suing Citibank for failing to reimburse victims of electronic fraud
Attorney General James Sues Citibank for Failing to Protect and Reimburse Victims of Electronic Fraud
On Tuesday, New York Attorney General Letitia James sued Citibank for allegedly failing to protect and refusing to reimburse victims of fraud.
“Banks are supposed to be the safest place to keep money, yet Citi’s negligence has allowed scammers to steal millions of dollars from hardworking people,” said Attorney General James. “Many New Yorkers rely on online banking to pay bills or save for big milestones, and if a bank cannot secure its customers’ accounts, they are failing in their most basic duty.
The lawsuit alleges that Citibank didn't implement strong online protections to stop unauthorized account takeovers; mislead account holders about their rights after their accounts were hacked and funds are stolen; and illegally denied reimbursement to victims of fraud.
"As a result of Citi’s lax security, New York customers have lost millions of dollars, and in some instances, their entire lifesavings, to scammers and hackers," the New York AG's office stated in a press release.
James wants to hold Citibank accountable for allegedly failing to protect its customers. She also wants the bank pay back defrauded New Yorkers with interest, pay penalties, and adopt enhanced anti-fraud defenses to prevent scammers from stealing consumers’ funds.
"There is no excuse for Citi’s failure to protect and prevent millions of dollars from being stolen from customers’ accounts and my office will not write off illegal behavior from big banks," James added.
Citi Maintains Poor Security and Anti-Fraud Protocols, Leading to Millions of Dollars in Losses for New York Account Holders
The Attorney General's Office highlighted one New Yorker who had $40,000 stolen from her retirement savings account and another New York woman who had $35,000 stolen from her account.
In another case the bank approved a fraudulent transfer without contacting the account holder, officials say.
More Victims Likely
Attorney General James encourages anyone who lost money to scammers who hacked into their online or mobile banking, whether the bank accounts were with Citi or any other bank, to report their experiences to OAG’s Consumer Frauds Bureau.
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