N.Y. sues Citi for lax data security, failing to reimburse fraud victims

Citibank faces a lawsuit from New York Attorney General Letitia James for allegedly failing to protect and reimburse customers who lost thousands of dollars in fraudulent wire transfers.

James filed a lawsuit Tuesday in U.S. District Court for the Southern District of New York, alleging Citi lacked “sufficiently robust data security measures to protect consumer financial accounts, respond appropriately to red flags, or limit theft by scam.”

Two victims allegedly lost thousands of dollars each when hackers managed to access their accounts and sent fraudulent wire transfers. In one case, Citi allegedly completed a fraudulent wire transfer without ever having contacted the victim to con