Lawsuit: Citibank refused to reimburse scam victims who lost “life savings”

Enlarge / The Citibank logo on a bank in New York City in January 2024.

Citibank is being accused of illegally refusing to reimburse scam victims who lost money due in part to Citibank’s poor online security practices by New York Attorney General Letitia James in a lawsuit filed today in US District Court for the Southern District of New York.

“The lawsuit alleges that Citi does not implement strong online protections to stop unauthorized account takeovers, misleads account holders about their rights after their accounts are hacked and funds are stolen, and illegally denies reimbursement to victims of fraud,” James’ office said in a press release.

The AG’s office alleged that Citi customers “have lost their life savings, their children’s college funds, or even money needed to support their day-to-day lives as a result of Citi’s illegal and deceptive acts and practices.”