Nearly three years have passed since Skokie, Illinois resident Scott Jacobson went through a terrifying financial ordeal that resulted in a protracted legal battle with Citibank, one of the largest banks in the world. The stakes were quite high, not only for Jacobson but also for Laurie, his sister, who is dependent upon him for care. Laurie, a 65-year-old woman with advanced Alzheimer’s disease, had the funds designated for her care pilfered right in front of the bank.
Jacobson found out in October 2021 that the $121,000 that was kept in a Citibank trust account for his sister had disappeared. Over the course of many days, three illicit wire transactions to Thailand had completely depleted the account. Startled by the unexpected withdrawal of the money, Jacobson contacted Citibank right away. The bank told him that there was nothing that could be done, which was a chilly and depressing response.
Desperate and frustrated, Jacobson turned to his personal banker for assistance. “My personal banker was there. I entered there after that. And I questioned him about everything. “Well, you’re going to have to get attorneys,” he remarks. In an October statement, Jacobson remembered. This exchange signaled the start of a fierce legal battle between the parties and exposed Citibank’s apparent disregard for both the customer’s situation and the larger problem of security lapses in its operations.
For an extended period, Jacobson and his legal representatives, James Bonebreak and Noel Elfant, diligently battled in court to demonstrate that Citibank lacked the required authorization for the foreign wire transfers made from Jacobson’s account. “The law requires the banks to tell [you] before the transfers take place, saying, ‘Hey consumer, these are the taxes, international taxes you’re going to pay.'” “The arbitrator determined that there was no proof [Citibank] took that action in this particular instance,” stated Bonebreak.
Jacobson endured severe financial and personal setbacks while the court case carried on. He had a difficult time affording his sister’s daily care, and his financial burden was so bad that it caused him to lose his house.
Leticia James, the attorney general of New York, sued Citibank in January of the following year, claiming that the bank’s “lax security procedures” had allowed con artists to steal millions of dollars from New Yorkers. This action, which echoed Jacobson’s complaints, accused Citibank of not putting in place robust online security, failing to protect and recompense fraud victims, and deceiving account holders about their rights once their accounts were hijacked.
This move gave Jacobson’s case fresh life and connected his legal battle with a wider investigation into Citibank’s business practices. Citibank made an attempt earlier this month to get the attorney general’s lawsuit dismissed, calling it “misguided” and claiming to have put strong safeguards in place to prevent fraud. On this request, the judge has not yet made a decision.
Recent findings by an arbitrator that Citibank had, in fact, broken its own rules for internet fund transfers marked a turning point in Jacobson’s struggle. In addition to ordering the restitution of the $121,005, the arbitrator’s ruling granted Jacobson over $20,000 in interest, acknowledging the financial toll the loss had taken on him during the preceding two years. In addition, legal fees were granted, which, in the face of corporate opposition, was a noteworthy triumph.
The case of Jacobson highlights the risks that consumers encounter in the era of digital banking, as security frequently falls short of the cunning strategies used by scammers. It also emphasizes how crucial it is to persevere and use legal action while defending one’s rights in the face of overwhelming obstacles.
Citibank, for its part, released a statement reiterating their commitment to strict security protocols and continuous attempts to prevent fraud, but they chose not to comment specifically on Jacobson’s case. “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,” the statement continued.
Clear and reassuring, Jacobson’s parting advice to anyone who might encounter a similar horror was to “keep trying, keep trying, you know, do what you have to do to try to get your money back and don’t quit, don’t give up.”
In addition to being a personal triumph, Scott Jacobson’s case settlement serves as a crucial reminder that financial institutions must maintain the highest levels of security and accountability. It’s a heartfelt call to action for all banks to strengthen their security measures and for patrons to continue being watchful and knowledgeable.
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