Citi customer was helpless to stop $40k being stolen after seeing password change before their eyes – bank couldn't help | 9AL0319 | 2024-05-11 19:08:01
A BANK customer was left in a panic after $40,000 was drained from their account following a sudden password change.
The victim lost the money after receiving a text message that she thought was from CitiBank.
The message informed her to log onto a website or call her local branch.
After clicking the link, but not providing any personal information, the woman called her branch to report the suspicious message.
The representatives at the branch reportedly assured the woman that everything was OK and not to worry.
A few days later, the woman logged into her account to find that a scammer changed her password, transferred $70,000 from her savings to her checking account, then made a wire transfer of $40,000.
None of the activity aligned with the customer's previous activity, but the transactions still went through.
After weeks of attempting to contact the bank, the customer's claim of fraud was denied by Citi.
This scam, along with others of Citibank customers being defrauded of thousands of dollars, was cited in a lawsuit filed by New York Attorney General Letitia James this January.
James is suing Citibank for allegedly failing to protect account holders from fraud and failing to reimburse its customers.
The Attorney General claims that Citibank does not effectively respond to red flags, such as the inconsistent banking activity in the case of the woman who lost her retirement savings.
James also claims that the bank does not appropriately respond to customers' notifications of fraud.
"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," James stated in a press release about the lawsuit.
"Banks are not required to make customers whole when those customers follow criminals' instructions and banks can see no indication the customers are being deceived," Citi told CBS News.
"However, given the industry-wide surge in wire fraud during the last several years, we've taken proactive steps to safeguard our clients' accounts."
Since the filing of the lawsuit, Citigroup has urged a federal judge to dismiss the case.
The bank recognized the ever-growing threats of scams but called James' efforts misguided.
In a filing with the Manhattan federal court this April, Citigroup argued that the lawsuit would "abruptly and dramatically upset how banks have organized their policies and practices for decades," according to Reuters.
Citigroup claims that the bank was in alignment with the Uniform Commercial Code which excuses banks from covering losses if in good faith they adopt commercially reasonable security measures to verify customers' identity.
The attorney general wants Citibank to refund all defrauded customers, pay a $5,000 civil fine per violation, and appoint an outside monitor to review bank records.
As scams become more sophisticated with the use of artificial intelligence, it is important you know how to spot a scam:
</div></p><div class="hashtags">#citi #customer #helpless #stop #40k #being #stolen #seeing #password #change #before #eyes #bank #couldnt #US #UK #NZ #PH #NY #LNDN #Manila #Politics </div></div> More >> https://ift.tt/DKYSPEI Source: MAG NEWS