Citibank Ordered To Pay $3,500,000 To Customer After Account Drained in Series of Unauthorized Withdrawals: Report

A court in New York has ordered Citibank to pay an elderly customer millions of dollars after around $773,000 was drained from her bank account in a series of unauthorized transactions.

The court has ordered Citibank to pay Graham approximately $3.5 million, which includes triple the amount that was fraudulently withdrawn, reports the New York Post.

Per court papers, Citibank failed to “investigate or to return the funds removed from [Graham’s] account without consent or authority” in contravention of the Electronic Funds Transfer Act. The Electronic Funds Transfer Act offers consumers protection against unauthorized transactions, transfers or withdrawals from bank accounts and other financial services.

The court further found that had Citibank “properly followed its own security procedures on the Citibank accounts following the ATM withdrawals, the account would have been flagged, thereby preventing the subsequent wire transfers.” Graham, who suffered a stroke in February of 2020, is legally blind and bed-bound.

According to the New York Post, Graham’s Citibank account was drained via unauthorized ATM withdrawals and wire transfers. The report says around 211 unauthorized out-of-state withdrawals amounting to a total of about $135,000 were made from Graham’s bank account by the octogenarian’s niece. Graham’s niece also drained approximately $638,000 from Graham’s Citibank account via wire transfers. The niece reportedly spent the money on vacations, a real estate property and cash gifts to other relatives.

Citibank has been ordered to pay $242,828 as interest accrued over time and damages amounting to $150,000. Citibank was also sanctioned $10,000 for allegedly concealing evidence during the court proceedings.

Citibank says it plans to appeal the court’s decision.

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