Citibank is being sued by New York for not compensating fraud victims.

• Citibank was sued by New York Attorney General Letitia James for allegedly not safeguarding and compensating victims of electronic fraud.
• Millions of dollars were lost due to the alleged failure, according to the attorney general's office.
• Citi stated that it diligently strives to prevent fraud and aid customers who fall victim to it.

On Tuesday, New York Attorney General Letitia James filed a lawsuit against for failing to safeguard and compensate victims of electronic fraud.

Citi is accused of failing to protect against unauthorized account takeovers, misleading fraud victims, and denying reimbursements illegally, resulting in millions of dollars in losses for New York account holders, including their entire life savings, according to a release from the attorney general's office.

Citi's negligence has resulted in the theft of millions of dollars from hardworking people, despite banks being considered the safest place to keep money. Many New Yorkers depend on online banking for bill payments and saving milestones, and if a bank fails to secure customer accounts, it is failing in its fundamental responsibility.

In 2020, Citigroup, the parent company of Citibank, accidentally sent almost $900 million to Revlon's lenders, highlighting the bank's past struggles with risk management and controls due to underinvestment in infrastructure resulting from decades of mergers.

In 2021, Citigroup was fined $400 million by banking regulators and ordered to enhance its risk management systems. Since becoming CEO in 2021, Jane Fraser has focused on improving the bank's technology and satisfying regulators.

The lawsuit in New York involves individuals who allege that their accounts were stolen and they were not compensated by the bank.

Citi stated that it diligently strives to prevent fraud and aid customers who fall victim to it.

The company has taken proactive steps to safeguard clients' accounts from wire fraud, including implementing leading security protocols, intuitive fraud prevention tools, clear insights about the latest scams, and driving client awareness and education. As a result, client wire fraud losses have been significantly reduced, and the company remains committed to investing in fraud prevention measures to help clients secure their accounts against emerging threats.