Consumer complaint received 2024-08-03
Product: Checking or savings account — CD (Certificate of Deposit)
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: CITIBANK, N.A. (NY)

I am writing to file a complaint against Citibank for its failure to protect my deposits, which has resulted in a substantial loss for me. 

Due to serious negligence and control deficiencies of Citibank, {$180000.00} was stolen from my account at a bank branch. I never authorized anyone to use my debit card and IDs for any transactions. My debit card and IDs have always been kept securely in my possession and were neither given to anyone nor lost. 

Losing this money is a huge loss to me and has a significant impact on my life. More than a month has passed since the incident, and it remains unresolved, severely affecting my mental state, work, and daily life. I strongly request that Citibank refund my deposits along with interest. 

I desperately need CFPB 's help with this matter and kindly ask that you urge Citibank to expedite the investigation and reimburse me for all my losses. 

Here are the details of the case : On XX/XX/year>, around XXXX XXXX, I tried to log into my Citibank online account and found that I could no longer access it. I immediately realized the severity of the situation. At that time, Citibank branches were closed, so I promptly called Citibanks customer service to report the fraud. I requested that they immediately freeze my account and investigate the matter. The fraud department representative said the system could not verify my identity and could not provide details about my account. I was extremely worried. 

The next day XX/XX/XXXX was a national holiday. Banks were all closed. I was still unable to check my account. 

On the third day, XX/XX/XXXX, I went to my Citibank branch at XXXX XXXX XXXX, XXXX, NY XXXX to report and check my account. The banker found that my two certificates of deposit had been closed with penalties and {$180000.00} had been withdrawn from my account through a teller at one of the Citibanks XXXX branches at XXXX XXXX XXXX XXXX, XXXX XXXX NY XXXX on XX/XX/XXXX. 

On the fourth day, XX/XX/XXXX, I went to the Citibank branch at XXXX XXXX XXXX where the branch manager found that my funds totaling {$180000.00} had been used to issue two official checks on XX/XX/XXXX. However, the manager discovered that these two checks had not yet been deposited into another bank and were still voidable. She immediately emailed the check department to request that they stop the transactions. 

On XX/XX/XXXX, I received a call from the branch manager of Citibanks XXXX XXXX XXXX XXXX. She informed me that the two official checks had been deposited into another bank by the criminal. 

Banks have legal obligations and fiduciary duties to ensure the safety of customers funds, but Citibank has failed to fulfill these. 

Citibank has significant deficiencies in preventing fraudulent transactions : XXXX. On XX/XX/XXXX, I noticed the fraudulent activities and promptly reported it to the fraud department. However, due to Citibanks XXXX  identity verification system, my cell phone number, which had been in my name for more than 10 years, couldnt receive the verification code, which delayed the action in response to the fraud. 

XXXX. Although they could not verify my identity during the phone call, they had been alerted to the fraud and could have temporarily frozen the two official checks. Despite my multiple requests to freeze the account, they failed to do so. They did not take any actions to prevent the development of the fraud, missing the chance to recover the loss. 

XXXX. On XX/XX/XXXX, the bankers at XXXX XXXX XXXX branch could have contacted the check department to freeze the checks. If they did not know the check numbers, they could have requested them from the XXXX XXXX XXXX branch. However, they did not take these actions, missing another chance to recover the loss. 

XXXX. On XX/XX/XXXX, why was the theft of such a large amount communicated only through email instead of immediately calling the check department to intercept the checks being deposited into another bank? The manager at XXXX XXXX XXXX branch delayed the process, missing yet another chance to recover the loss. 

XXXX. On XX/XX/XXXX, I set up my case with the fraud department successfully and I also told the representative that the official checks hadnt been deposited by XX/XX/XXXX. From XX/XX/XXXX to XX/XX/XXXX, Citibank had five business days to void the official checks and intercept the transactions, but they failed to do so. 

XXXX. Citibanks severe negligence also included failing to check signatures and verify the authenticity of the ID for such a substantial amount. The debit card and ID used by the criminal must be forged, and as bank teller and manager, they should have had the skills to detect forgeries. If they lacked these skills, how could they protect customers ' funds? 

XXXX. Large amounts of certificates of deposit being closed before maturity and from a branch I had never been to were clearly red flags. The bank teller and the manager failed to demonstrate necessary vigilance for such anomalies. 

XXXX. Citibank failed to make sufficient efforts to stop the fraudulent transactions timely, resulting in preventable losses. It allowed the criminals to succeed, which would encourage them to continue committing crimes. This is extremely detrimental to our society and community. 

On XX/XX/XXXX, I successfully set up the case with the XXXX after making 7 attempts at 3 different XXXX offices and immediately mailed the case number to the Incident Reporting Unit at Citibank. Since setting up my case with Citibank, I have visited the bank branch many times and made numerous follow-up calls, but they just keep asking me to wait. 

I kindly request CFPB to intervene in this matter and urge Citibank to expedite their investigation and compensate me for the full amount lost. Your assistance in ensuring that Citibank fulfills its responsibilities and provides a swift resolution would be greatly appreciated. Thank you very much!