You just need to finish part of the presentation that I post below for in ppt format.
Q: Consider the behavior of this company as described in the article linked below (and
please find other articles or sources to further learn about the actions).
a. Does this behavior reflect, or is it against, the companys culture? How/why not?
b. What message(s) are the leaders sending by having taken this action?
2/27/24, 2:18 PM
Citigroup Sued Over Handling of Online Scams – WSJ
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law.
For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.
https://www.wsj.com/finance/investing/citigroup-sued-over-handling-of-online-scams-5eeb53c2
FINANCE
INVESTING
Citigroup Sued Over Handling of
Online Scams
New York Attorney General Letitia James wants bank to pay back
defrauded customers
By Justin Baer Follow and Dean Seal Follow
Jan. 30, 2024 12:37 pm ET
New York state is pressing Citi to enhance the banks antifraud defenses. PHOTO: JUTHARAT
PINYODOONYACHET FOR THE WALL STREET JOURNAL
New York Attorney General Letitia James sued a unit of Citigroup C 0.21%
,
alleging that the bank had failed to protect its customers from online scams and
then illegally denied those account holders reimbursements.
The results are devastating, Jamess office wrote Tuesday in its civil
complaint. Consumers lose tens of thousands of dollars or more by doing
nothing more than clicking on a link in a text that appears to be from a trusted
source, providing information on a call with a purported representative of Citi,
or answering security questions on a website that looks official.
The suit described the experiences of several unnamed New Yorkers who lost
money through scams related to their Citi bank accounts. In one instance, a bank
customer lost $40,000 after clicking on a link in a text message that appeared to
be from Citi.
https://www.wsj.com/finance/investing/citigroup-sued-over-handling-of-online-scams-5eeb53c2
1/2
2/27/24, 2:18 PM
Citigroup Sued Over Handling of Online Scams – WSJ
Citibank lacked robust security measures and didnt respond to red flags, efforts
that would have limited thefts by scammers who had infiltrated customers
accounts to send fraudulent wire transfers, according to the complaint. Citi
failed to take immediate action to recover money it had sent out to those
swindlers, and frequently assured falsely that their money and accounts are
secure while instructing clients to visit their local branches, the lawsuit said.
When customers did visit branches, Citi employees allegedly coerced them into
filling out affidavits and then used that paperwork against them by subjecting
those claims to narrow commercial laws governing wire transfers rather than
broader consumer projections. Citi then summarily rejects claims for
reimbursement and instead blames consumers, relying on the information that
the banks representatives encouraged consumers to share with Citi, the state
prosecutors said in their suit.
A Citi spokesman said the bank closely follows all laws and regulations related
to wire transfers and works extremely hard to prevent threats from affecting our
clients and to assist them in recovering losses when possible.
The spokesman added: Banks are not required to make clients whole when
those clients follow criminals instructions and banks can see no indication the
clients are being deceived.
At issue is whether customers victimized by online scams and illicit wire
transfers are protected under the Electronic Fund Transfer Act, a federal law
that set rights and liabilities for consumers and their financial institutions.
Jamess office is pressing Citi to pay back defrauded New Yorkers, pay fines and
enhance its antifraud defenses.
Citi has been in discussions with Jamess office for months to resolve complaints
individuals had brought to the prosecutors attention, people familiar with the
matter said.
Write to Justin Baer at justin.baer@wsj.com and Dean Seal at
dean.seal@wsj.com
Appeared in the January 31, 2024, print edition as ‘Citigroup Unit Sued Over Handling of Online
Scams’.
https://www.wsj.com/finance/investing/citigroup-sued-over-handling-of-online-scams-5eeb53c2
2/2
