Citibank sued over failure to defend customers against hacks, fraud

New York Attorney General Letitia James sued Citibank, alleging the bank failed to protect customers from online fraud and refused to reimburse victims as required under the EFTA, citing weak controls (e.g., poor detection of unrecognized devices/locations, rapid multi-account transfers), slow response and investigation, and misleading communications that led to denial of claims; the AG seeks restitution and penalties, while Citibank responded that it complies with laws, is not required to reimburse when customers follow scammers’ instructions without visible deception, and has invested in enhanced fraud-prevention measures amid rising wire fraud.