Citigroup Faces Lawsuit Over Alleged Online Fraud Protections Failures

Citigroup is facing a lawsuit from New York Attorney General Letitia James, who claims the bank failed to protect customers from online fraud and denied reimbursement for victims, including one individual who reportedly lost $40,000 through a phishing scheme. U.S. District Judge Paul Oetken ruled that the lawsuit could proceed under the Electronic Fund Transfer Act (EFTA), emphasizing the bank's inadequate fraud prevention measures. James expressed concern over the millions lost by New Yorkers due to Citigroup's alleged failures, stating that customers expect their funds to be safeguarded. Citigroup's attempts to dismiss the case were rejected, and the lawsuit will focus on the bank's anti-fraud protections for wire transfers and online payment services. The ongoing case highlights the increasing sophistication of cyber threats and the need for banks to enhance their security protocols. Citigroup has not yet provided a detailed response to the allegations beyond denying the claims.