ALBAWABA - In a startling banking error, Citigroup mistakenly transferred $81 trillion into a customer's account instead of the intended $280, according to a report by the Financial Times. The error, which took place in April 2024, went unnoticed by two bank employees responsible for processing and verifying transactions.
Hamas to release Hisham al-Sayyid without ceremony out of respect for Palestinian citizens of IsraelA third employee detected the mistake 90 minutes later, leading to a swift reversal of the transaction within hours. An internal bank report revealed that the error was caused by a data entry mistake, a flawed backup system, and an inefficient user interface.
Citigroup confirmed the incident, emphasizing that the transaction would have never been completed as the bank does not possess such an astronomical sum.
The bank further assured that its security mechanisms would have prevented the funds from ever leaving its system.
Following the incident, Citigroup notified U.S. financial regulators, referring to it as a near-miss error.
This mishap comes amid increased regulatory scrutiny on Citigroup. In July 2024, the Federal Reserve and U.S. banking regulators imposed a $135.6 million fine on the bank for deficiencies in internal controls and risk management, following an earlier $400 million penalty in 2020 for similar lapses.
