Consumer complaint received 2024-11-19 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: CITIBANK, N.A.
State: CA

Complaint narrative:
The account holder 's personal and business checking accounts were illegally accessed and fraudulently debited creating a total realized loss of {$28000.00} for the account holder. Perpetrators used online and telephonic means to illegally gain access to the personal checking account and effected a transfer from the personal checking account to the account holder 's business checking account and then initiated an unauthorized wire of {$28000.00} to a 3rd party account at XXXX XXXXXXXX XXXX. Citibank failed to detect and interdict the initial unauthorized personal account access by the perpetrator or the {$20000.00} illegal transfer debiting funds from this personal account and moving them to a business account to increase the total funds illegally appropriated. Citibank did not seek to contact the account holder to confirm such {$20000.00} transfer was authentic and approved. The perpetrator then initiated a wire transfer to illegally steal {$28000.00} from the account holder and Citibank again did not flag this unusual account activity prior to initiation of the wire. However, Citibank does indicate that they imposed a " post no debit '' fraud alert on the account at XXXX, nonetheless this fraud alert and account freeze directive was ineffective as Citibank still released the fraudulent wire at XXXX. The account holder, in an attempt to interdict and prevent fraudulent transfers in their account, immediately visited a Citibank branch and met with a personal and business banker to block and recall all transfers and wires within minutes of when they were initiated. The Citibank representatives falsely assured the account holder that the wire transfer had been intercepted and even if it had not, that an immediate recall had been initiated and the funds would be restored within 48 hours. Both representations have proven patently and knowingly false. Significant additional detail is provided in the account holder 's attached investigation summary. All banking clients of Citibank should be warned that the XXXX  Attorney General filed suit against Citibank on XX/XX/year> alleging that Citibank has failed to undertake commercially reasonable anti-fraud measures, is negligent in alerting account holders to fraudulent activity, is grossly negligent in executing fraud interdiction measures and makes false representations as to the security of customer 's funds and their recovery in instances of account security breaches. Further, the XXXX Attorney General alleges that Citibank willfully fails to perform its obligations under the Electronic Funds Transfer Act to protect and restore fraudulently transferred funds. All Citibank customers should XXXXXXXX XXXX XXXX XXXXXXXX XXXX XXXX. Citibank N.A. and review the complete allegations of this lawsuit and determine if they are comfortable continuing any banking relationship with Citi.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with monetary relief