Citigroup Sued by Cardholders Over May Security Breach

By Patricia Hurtado, October 7, 2011

Citigroup Inc. (C), the third-largest U.S. bank, was sued by cardholders over a May computer security breach that affected more than 360,000 accounts.  Kristina and Steven Orman of Northport, New York, sued Citigroup in federal court in Manhattan today, seeking to represent victims of the hacking in a class-action, or group, lawsuit. Money was stolen from their bank account and their credit cards were illegally used by third parties following the breach, they said.  “Defendants have taken no steps that adequately or effectively protect cardholders against illegal use of the cardholders’ sensitive and extensive financial records since the breach,” the Ormans alleged in the complaint. They seek unspecified damages.  Citigroup said in June that the breach, affecting 1.5 percent of its card customers in North America, was discovered at Citi Account Online during routine monitoring. Customers’ names, account numbers and e-mail addresses were viewed, Citigroup said. http://www.bloomberg.com/news/2011-10-07/citigroup-sued-in-n-y-by-cardholders-over-security-breaches.html

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