Saturday, June 25, 2011

Hackers Caused $2.7 Million of Citi Card Losses

Citigroup Inc. (C), the third-largest U.S. bank, said about 3,400 customers lost about $2.7 million when their credit-card information was breached by hackers earlier this year.

The customers will be reimbursed, Sean Kevelighan, a spokesman for the New York-based bank, said in a phone interview today. It’s the first public acknowledgement by Citigroup that the incident resulted in any financial losses.

Citigroup said earlier this month more than 360,000 credit- card accounts, or 1.5 percent of the bank’s total in North America, may have been compromised by hackers in May. The Wall Street Journal reported the amount of the loss earlier today.

“Citi immediately rectified the data breach upon discovery, while also placing internal fraud alerts and monitoring on all accounts at risk,” Kevelighan said in an e- mail earlier this month. “Simultaneously, we began analysis to determine the precise accounts and type of information accessed.”
source-Bloomberg
steven
management trainee-fundamental analysis
DENIP consultants Pvt Ltd

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