Citigroup Seeks Dismissal of New York AG’s Lawsuit Over Online Scam Losses

Citigroup is pushing to dismiss a lawsuit filed by New York Attorney General Letitia James in January, accusing the bank of failing to reimburse customers who were scammed online. According to a Reuters report, the lawyers for Citi have argued before U.S. District Judge Paul Oetken that the bank has strong procedures in place to protect its customers from fraudulent transfers.

The lawsuit claims that Citibank’s inadequate security measures allowed scammers to steal millions of dollars from New York customers through unauthorised wire transfers. Attorney General James argues that the bank’s negligence caused significant financial harm to its customers.

Citi, however, asked the federal judge to dismiss the case, citing the Uniform Commercial Code. They claim that as long as the bank implements reasonable security measures in good faith, they should not be held responsible for these losses.