Judge Rules New York Lawsuit Against Citibank Can Proceed

Lawsuit Overview - Citibank faces a New York state lawsuit for allegedly failing to protect and reimburse fraud victims [1] - A federal judge rejected Citibank's request to dismiss the lawsuit, ruling that the Electronic Fund Transfer Act (EFTA) applies to unauthorized wire transfers through Citibank's consumer accounts [1][2] Allegations Against Citibank - Citibank allegedly lacked protections against account takeovers and misled customers about their rights during account hacks [3] - The bank is accused of unlawfully denying reimbursements to fraud victims [3] - The lawsuit claims Citibank must reimburse fraud victims under the EFTA due to offering wire transfers online and through mobile apps [4] Citibank's Response - Citibank expressed disappointment with the court's decision, stating its industry-standard practices have long been recognized as compliant with applicable law [3] - The bank emphasized its adherence to wire transfer laws, fraud prevention efforts, and assistance in client loss recovery [4] - Citibank highlighted proactive measures to safeguard accounts, including security protocols, fraud prevention tools, and client education [5] Industry Context - The lawsuit highlights the broader issue of wire fraud, which has surged industry-wide in recent years [5] - Citibank's case underscores the importance of robust fraud prevention and customer protection measures in the banking sector [3][5]