Citigroup lawyers have asked U.S. District Judge Paul Oetken to dismiss a complaint filed in January by Attorney General Letitia James, who accuses its Citibank unit of failing to pay back customers who were victims of online scammers, Bloomberg News reported on Tuesday.
Lawyers said the bank had strong and comprehensive procedures to protect customers from scams and fraudulent transactions, the report said.
Mr. James, the New York state attorney general, sued the Citibank unit in January, alleging that its lax security protocols made it easy for scammers to gain access to customers’ accounts and their deposits. theft through unauthorized electronic transfers.
She said Citi’s “neglect” is costing state clients millions of dollars.
A Bloomberg report says Citi said US banks will have to make a “significant change” in how electronic payments are handled if New York state wins the lawsuit.
In April, Citi asked a federal judge to dismiss the lawsuit, saying the proper standard in the Uniform Commercial Code, which all US states use, exempts banks from to cover losses if they take, in good faith, commercially reasonable security measures to verify the identity of the customer. .
Citigroup and Mr. James’ office did not immediately respond to Reuters requests for comment.
2024-10-08 21:37:00
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