On January 30, 2024, NY Attorney General Letitia James filed a lawsuit against Citibank for failing to protect customers from fraud and inadequately reimbursing fraud victims.

The lawsuit claims New York customers lost millions of dollars, with some losing their life savings, due to Citi's insufficient security measures.

Citibank is accused of not preventing unauthorized account takeovers, refusing to reimburse customers following fraud, and misleading them about their post-hack rights.

The lawsuit seeks to halt Citibank's alleged deceptive practices, secure restitution for unreimbursed victims, and impose penalties and disgorgement.

AG James' action is in line with her previous efforts to address unfair banking practices, including eliminating overdraft fees and tackling credit card application discrimination.

Citibank denies the allegations, insisting it complies with relevant laws and has taken proactive measures to protect clients against fraud.