New York attorney general sues Citibank for refusing to reimburse victims of fraud

By Ovunc Kutlu

ISTANBUL (AA) - New York Attorney General Letitia James on Tuesday sued Citibank for failing to protect and refusing to reimburse victims of fraud.

The lawsuit claims that Citibank 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.

The Office of the Attorney General said it has also found that the bank failed to respond to fraudulent activity appropriately and quickly, alleging New York customers have lost millions of dollars, and in some instances their entire lifesavings to scammers and hackers, as a result of Citibank’s lax security.

"Banks are supposed to be the safest place to keep money, yet Citi’s negligence has allowed scammers to steal millions of dollars from hardworking people," James said in a statement. "Many New Yorkers rely on online banking to pay bills or save for big milestones, and if a bank cannot secure its customers’ accounts, they are failing in their most basic duty."

"There is no excuse for Citi’s failure to protect and prevent millions of dollars from being stolen from customers’ accounts and my office will not write off illegal behavior from big banks," she added.