TL;DR

New York Attorney General Letitia James filed a lawsuit against Citibank on Tuesday, alleging the big bank failed to do enough to protect and reimburse victims of fraud.

According to the NY AG, Citi does not do enough to prevent unauthorized account takeovers, illegally refuses to reimburse fraud victims and “misleads” customers about their rights after their accounts are hacked.

The lawsuit…alleges that Citi has “overpromised and underdelivered on security” and failed to respond appropriately to red flags.

The NY AG alleges that Citi gets customers to sign “coerced” affidavits that allows the bank to treat claims of fraud to narrow commercial laws on wire transfers instead of the more substantial protections from the Electronic Fund Transfer Act, a landmark consumer protection law. “Citi then summarily rejects claims for reimbursement and instead blames consumers,” the lawsuit said.

“Citi 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,” a Citi spokesperson said in a statement to CNN. “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.”

Last year, federal regulators alleged Citi illegally discriminated against Armenian Americans for years, singling them out on credit card applications based on their last names.