Citigroup: Report of Cyber Breach False; Accounts Safe

Citigroup adamantly denies a report in the Wall Street Journal that federal authorities are investigating a computer-security breach targeting Citibank accounts, and that a Russian cyber gang is suspected of orchestrating the attack.

“Allegations … of a breach of Citi systems and associated losses are false,” the banking giant said in a strongly-worded statement. “Any allegation that the FBI is working on a case at Citigroup involving a breach of Citi systems resulting in tens of millions of dollars of losses is false. There has been no breach and there have been no associated losses.”

Citi sent memos to employees in U.S. bank branches so that they can assure customers that accounts are safe.  The memos reiterate the institution’s strong denial of the report.

“We take the security of our customers’ accounts and systems seriously,” Citi said. “We continuously take steps to protect our customers against fraud, and we have state-of-the-art processes to detect and prevent criminal activity.”

The Wall Street Journal reported today that Citi has had to field inquiries from customers who are worried about their bank accounts.

The newspaper reported again today that federal authorities are investigating.

“The breach could have involved a contractor that processes transactions for the U.S. financial institution. Investigators suspect that the theft was conducted by a well-known Russian cyber gang,” WSJ reported.

Citi stated that, as other with other financial institutions, “there are instances of fraud or breaches of third-party systems that result in our taking actions to protect our customers and Citi. However, contrary to the Wall Street Journal reported today, there has been no breach of Citi’s systems.”