Citigroup Challenges New York Lawsuit Alleging Failure to Reimburse Fraud Victims

Tuesday, 2 April 2024, 21:24

Citigroup is requesting a federal judge to dismiss a lawsuit filed by New York Attorney General Letitia James, claiming that its Citibank unit did not refund customers scammed online. Despite acknowledging the seriousness of online wire fraud, the bank criticized James' approach as 'misguided' under the federal law governing electronic fund transfers. Citigroup argues that banks should be excused from reimbursing losses if they implement reasonable security measures in good faith to authenticate customer identities, as stipulated in the Uniform Commercial Code.

https://store.livarava.com/0397580d-f142-11ee-8940-87cc5c87fb08.jpg — Citigroup Challenges New York Lawsuit Alleging Failure to Reimburse Fraud Victims

Citigroup Urges Dismissal of Lawsuit

Citigroup is seeking the dismissal of a lawsuit filed by New York Attorney General Letitia James, alleging failures to reimburse customers who are victims of online scams.

Challenging Legal Approach

The third-largest U.S. bank criticized James' efforts as 'misguided' under federal law, stating that the application of the Uniform Commercial Code should govern liability in such cases.

Protecting Against Fraud: Citigroup argues that implementing reasonable security measures should exempt banks from covering losses.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

Citigroup Urges Dismissal of Lawsuit

Challenging Legal Approach

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