Introduction
Scott Jacobson, a caretaker for his sister with advanced Alzheimer’s disease, had $121,000 drained from her Citibank trust account through fraudulent wire transfers. Citibank initially claimed there was nothing they could do to recover the funds.
Background
The funds for Scott’s sister’s care came from a trust account set up by their parents. In October, Scott noticed the money was missing and immediately reported the fraud. Citibank told him that he needed to hire attorneys, and for years, Scott and his attorney fought the bank in court.
Legal Battle
Scott’s attorney argued that Citibank failed to obtain the necessary approvals for the international wire transfers and did not notify him before the transfers took place. Despite Citibank’s claims of implementing robust countermeasures, an arbitrator found that the bank did not follow its own protocols and ignored internal scam alerts.
Support from New York Attorney General
In January, the New York Attorney General filed a lawsuit against Citibank, alleging that the bank’s lax security allowed scammers to steal millions from New York consumers. The lawsuit accused Citibank of failing to protect victims of fraud and misleading account holders about their rights.
Arbitration Ruling
Earlier this month, an arbitrator ruled in Scott’s favor, awarding him the full amount of $121,000 plus nearly $20,000 in interest. The ruling found that Citibank did not get Scott’s approval before authorizing the wire transfers and ignored scam alerts. The final two wire transfers were authorized after Scott notified the bank of the fraud.
Conclusion
Scott’s perseverance paid off, and he encourages other fraud victims to keep fighting for their money. Citibank declined to comment on the case but stated that they follow all laws and regulations related to wire transfers and have taken steps to safeguard their clients’ accounts.
