New York Attorney General Letitia James has filed a federal lawsuit against Citibank [1] [3] [4] [6] [7] [8], alleging inadequate customer protection from identity theft and illegal refusal to reimburse affected individuals. The lawsuit claims that millions of dollars were lost due to the bank’s weak security measures and fraudulent activities. It also accuses Citibank of misleading customers about their rights after their accounts are hacked [4].


Citibank is facing a lawsuit for allegedly failing to implement sufficient safety measures and security protocols to prevent fraudsters from stealing money through online and mobile banking [2]. The lawsuit argues that Citibank should provide reimbursement under the Electronic Fund Transfer Act (EFTA) [5], which mandates banks to reimburse stolen funds if promptly alerted to unauthorized activity [5]. The attorney general seeks a permanent injunction against Citibank, along with restitution, damages for affected consumers [5], and civil penalties [5]. The lawsuit aims to hold Citibank accountable by requiring reimbursement [6], imposing penalties [6], and implementing enhanced anti-fraud measures [6].


This lawsuit against Citibank highlights the significant impact of weak security measures and fraudulent activities on customers. It emphasizes the need for financial institutions to prioritize customer protection and implement robust security protocols. The outcome of this case will have implications for the banking industry, potentially leading to stricter regulations and increased accountability for preventing identity theft and unauthorized account takeovers.