Citigroup must face lawsuit over failure to stop online scams, judge rules

A landmark ruling forces Citi to answer for lax fraud protections. Victims, including one who lost $40K, may finally see justice.

, and Administrator

2025 November 22 . 8:21 PM

1 min read

In this picture we can see a market, in which we can see some stoles and we can see few people are... — In this picture we can see a market, in which we can see some stoles and we can see few people are around.

Citigroup must face lawsuit over failure to stop online scams, judge rules

A federal judge has ruled that Citigroup must face a lawsuit over claims it failed to protect customers from online scams. The case, brought by New York Attorney General Letitia James, alleges that the bank’s security systems were inadequate, allowing fraudsters to steal millions. Citigroup had pushed to dismiss the lawsuit but was unsuccessful in blocking key parts of the legal challenge.

Attorney General Letitia James filed the lawsuit in January 2024. She accused Citigroup of neglecting customer safety by maintaining weak security measures, which enabled scammers to drain accounts. One victim reportedly lost $40,000 after clicking a fake text message that appeared to come from Citibank.

The ruling means Citigroup will have to defend itself against allegations of failing to safeguard customers from online fraud. The case will now move forward, with potential financial penalties and restitution for affected account holders. The outcome could set a precedent for how banks handle fraud prevention and customer compensation in the future.