Citibank Ordered To Pay $3,500,000 To Customer After Account Drained in Series of Unauthorized Withdrawals: Report
A recent ruling by a court in New York has ordered Citibank to compensate an elderly customer who had a significant amount of money drained from her bank account in unauthorized transactions. The court mandated Citibank to pay the customer, identified as Graham, approximately $3.5 million, which includes triple the amount that was fraudulently withdrawn.
According to court documents, Citibank failed to investigate or return the funds that were taken from Graham’s account without her consent or authorization, violating the Electronic Funds Transfer Act. This act is designed to protect consumers against unauthorized transactions, transfers, or withdrawals from their financial accounts.
The court also determined that if Citibank had followed its own security protocols on Graham’s accounts after the initial ATM withdrawals, the account would have been flagged, preventing further unauthorized wire transfers. Graham, who is elderly, legally blind, and bed-bound due to a stroke, suffered significant financial losses as a result of these unauthorized transactions.
The unauthorized withdrawals from Graham’s Citibank account included approximately 211 out-of-state ATM transactions totaling $135,000, conducted by Graham’s niece. Additionally, the niece made unauthorized wire transfers amounting to around $638,000, using the funds for vacations, real estate purchases, and cash gifts to other relatives.
In addition to the reimbursement of the fraudulently withdrawn funds, Citibank has been ordered to pay $242,828 in accrued interest and $150,000 in damages. The bank has also been sanctioned $10,000 for allegedly withholding evidence during the legal proceedings. Citibank has expressed its intention to appeal the court’s decision.
As this case unfolds, it serves as a cautionary tale for financial institutions and consumers alike to prioritize security measures and vigilance in protecting accounts from unauthorized access and fraudulent activities. Stay informed by following us on X, Facebook, and Telegram for the latest updates. Don’t miss out on important information by subscribing to receive email alerts directly to your inbox. Keep track of price action and explore The Daily Hodl Mix for a comprehensive view of the latest news and trends in the financial world.
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