Citigroup Mistakenly Credits $81 Trillion Instead of $280: Report
In a shocking banking mishap, Citigroup mistakenly credited an account with a staggering $81 trillion instead of the intended $280, before detecting and correcting the error within 90 minutes, according to a report by the Financial Times.
In a shocking banking mishap, Citigroup mistakenly credited an account with a staggering $81 trillion instead of the intended $280, before detecting and correcting the error within 90 minutes, according to a report by the Financial Times.
The blunder, termed a “near miss” in the banking industry, slipped past a payments employee and a second bank official before being caught by a third employee. Fortunately, the payment was reversed several hours later, and no funds left the bank, Citigroup clarified.
How the Error Happened
Citigroup explained that the issue arose due to a system blockage that required payments to be entered manually. The error stemmed from a pre-populated field containing 15 zeros, leading to the massive miscalculation.
“Despite the fact that a payment of this size could not actually have been executed, our detective controls promptly identified the inputting error between two Citi ledger accounts, and we reversed the entry,” Citigroup said in a statement. The bank also assured that the mistake had no impact on the client or the institution itself.
Citigroup’s History of Risk Management Issues
This latest error adds to Citigroup’s ongoing challenges with risk management. In July 2024, the Federal Reserve and the Office of the Comptroller of the Currency (OCC) fined the bank $136 million for failing to upgrade its systems, despite a 2020 regulatory order.
Previously, in October 2020, Citigroup was slapped with a $400 million fine for deficiencies in risk management, data governance, and internal controls.
This incident highlights the continued vulnerabilities in Citigroup’s financial systems and raises concerns over the effectiveness of its internal controls, especially following multiple regulatory warnings and fines.
Sources By Agencies
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