New York Attorney General Demands Reparations: Major US Bank Faces Millions in Payouts for Neglecting Fraud Victims
New York Attorney General Letitia James is taking legal action against Citibank, one of the largest banks in the United States, alleging the bank’s implementation of weak security measures, deceptive practices, and a failure to reimburse fraud victims as required by law.
James contends that Citibank’s lax digital defenses have left customers vulnerable to scams, resulting in the loss of millions of dollars, including entire life savings. The lawsuit highlights Citibank’s inadequate response to red flags such as unusual transfers, unknown devices, and attempts to change account information. The Attorney General seeks accountability, demanding Citibank to repay defrauded customers with interest, pay penalties, and enhance anti-fraud measures. The lawsuit also accuses Citibank of deceptive practices to evade legal obligations, exploiting exceptions to deny customer refunds.
James insists on disgorging profits, imposing fines for law violations, and appointing an independent third party to identify all customers harmed by the alleged illegal practices. The Attorney General emphasizes that banks should be secure havens for money, and Citibank’s negligence has allowed scammers to exploit and steal from hardworking individuals, vowing not to tolerate such illegal behavior from major financial institutions.
Clever Robot News Desk 5th February 2024
