The state attorney general files a lawsuit alleging that Citibank's security is poor and money is stolen by hacking and does not provide compensation.

New York Attorney General Letitia James has sued Citibank for failing to implement safeguards to prevent online banking account takeovers and refusing to compensate customers whose money was stolen. .

Attorney General James Sues Citibank for Failing to Protect and Reimburse Victims of Electronic Fraud

Citibank sued over failure to defend customers against hacks, fraud
https://www.bleepingcomputer.com/news/technology/citibank-sued-over-failure-to-defend-customers-against-hacks-fraud/

The New York State Attorney General's Office says Citibank has failed to respond appropriately and quickly to fraud, even though customers have had their savings stolen and, in some cases, lost all their assets. Holding banks accountable for failing to protect their customers. It requires customers who have been defrauded to repay the money with interest, pay fines and strengthen anti-fraud measures.

'Banks are supposed to be the safest place to keep your money, but Citibank's negligence allowed fraudsters to steal millions of dollars from hard-working people,' said Attorney General James. rely on online banking to pay their bills and save for life's milestones. By failing to protect customer accounts, banks are failing in their most basic duty. There is no excuse for failing to protect millions of dollars from being stolen from customers' accounts, and the Attorney General's Office will not overlook illegal conduct by major banks.' said.

A study by the New York State Attorney General's Office found that Citibank is not only vulnerable to attackers using unrecognized devices or accessing from new locations, but also when customers attempt to change their credentials. He said he was not able to respond appropriately.

It also does not protect against attempts to transfer money from multiple accounts to a single account, allowing a malicious attacker to transfer tens of thousands of dollars from a victim's account in just a few minutes. I did.

Furthermore, Citibank is suspected of failing to investigate or report the matter to law enforcement even after customers reported it.

In addition, the company misleads customers whose accounts have been hacked into thinking that their deposits are safe, promises to return the stolen money, and forces them to complete a special affidavit detailing the damage. It is said that this was used to deny requests for reimbursement.

Citibank has issued the following statement:

“Citi complies with all laws and regulations regarding wire transfers, and makes every effort to prevent threats affecting our customers and help them recover losses to the extent possible. If you follow someone's instructions and there is no evidence that you were deceived, we are not obligated to compensate you for your losses.However, as wire fraud has skyrocketed across the industry in recent years, we are using advanced security protocols and intuition. We have taken proactive steps to protect our customers' accounts with modern fraud prevention tools, clear insight into the latest scams, and customer awareness and education. We continue to invest in fraud protection to protect our customers' accounts from new threats.'