As an international company, it has long encouraged cybercrime.
Letitia James, the New York Attorney General, accuses Citibank of failing to comply with the Customer Protection from Fraud Act. The bank, according to James, not only failed to prevent the theft of funds from its customers ' accounts, but also refused to compensate for losses, which is contrary to the Law on Electronic Financial Transfers (EFTA).
The investigation found that Citibank's systems did not respond adequately to suspicious activity, such as accessing accounts from unfamiliar devices or from new locations. In addition, the bank did not prevent transfers of funds between multiple accounts, which made it easier for fraudsters.
According to the prosecutor's office, Citibank did not initiate automatic investigations after reports of fraud and did not report crimes to law enforcement agencies. And victims who reported fraud on their own faced long waits on their phones, which gave fraudsters time to transfer stolen funds further down the chain and confuse the financial trail.
Representatives of the bank are accused of deceiving customers, assuring them of the safety of funds and promising a refund of stolen money, without taking immediate action. Customers were also sent to bank branches to fill out statements, which were then used to refuse compensation.
Through the lawsuit, Letitia James seeks to stop Citibank's deception and seek compensation for affected customers, as well as the imposition of fines and recovery of illegally withheld funds.
Two years ago, James led a coalition of attorneys general urging major banks, including JPMorgan Chase, Bank of America, U.S. Bank, and Wells Fargo, to eliminate overdraft fees on consumer accounts.
In response to the allegations, Citibank said that the bank strictly follows all laws and regulations related to electronic transfers. According to representatives, the bank is actively working to prevent threats to customers and helps in recovering losses when possible. Citibank also says it is investing in fraud prevention measures and improving the security of customer accounts.
As you can see, each of the parties to this conflict has its own truth. We will closely monitor the development of the situation and the legal proceedings of the parties. Time will tell whose position will be more convincing and justified from a legal point of view.
One way or another, a public accusation of Citibank will force other banks to pay more attention to cybersecurity issues and protect the interests of their customers, so as not to get into a similar high-profile story that is extremely harmful to the reputation of any company.
Letitia James, the New York Attorney General, accuses Citibank of failing to comply with the Customer Protection from Fraud Act. The bank, according to James, not only failed to prevent the theft of funds from its customers ' accounts, but also refused to compensate for losses, which is contrary to the Law on Electronic Financial Transfers (EFTA).
The investigation found that Citibank's systems did not respond adequately to suspicious activity, such as accessing accounts from unfamiliar devices or from new locations. In addition, the bank did not prevent transfers of funds between multiple accounts, which made it easier for fraudsters.
According to the prosecutor's office, Citibank did not initiate automatic investigations after reports of fraud and did not report crimes to law enforcement agencies. And victims who reported fraud on their own faced long waits on their phones, which gave fraudsters time to transfer stolen funds further down the chain and confuse the financial trail.
Representatives of the bank are accused of deceiving customers, assuring them of the safety of funds and promising a refund of stolen money, without taking immediate action. Customers were also sent to bank branches to fill out statements, which were then used to refuse compensation.
Through the lawsuit, Letitia James seeks to stop Citibank's deception and seek compensation for affected customers, as well as the imposition of fines and recovery of illegally withheld funds.
Two years ago, James led a coalition of attorneys general urging major banks, including JPMorgan Chase, Bank of America, U.S. Bank, and Wells Fargo, to eliminate overdraft fees on consumer accounts.
In response to the allegations, Citibank said that the bank strictly follows all laws and regulations related to electronic transfers. According to representatives, the bank is actively working to prevent threats to customers and helps in recovering losses when possible. Citibank also says it is investing in fraud prevention measures and improving the security of customer accounts.
As you can see, each of the parties to this conflict has its own truth. We will closely monitor the development of the situation and the legal proceedings of the parties. Time will tell whose position will be more convincing and justified from a legal point of view.
One way or another, a public accusation of Citibank will force other banks to pay more attention to cybersecurity issues and protect the interests of their customers, so as not to get into a similar high-profile story that is extremely harmful to the reputation of any company.
