September 26, 2016

Breach Costs Citigroup $2.7 Million

Citigroup Inc. has revealed that around 3,400 of the customers whose credit-card information was hacked have suffered about $2.7 million in losses.

Citi acknowledged the breach earlier this month, saying hackers had accessed more than 360,000 Citi credit card accounts of U.S. customers. The hackers were able to obtain the numbers, along with the customers’ names and contact information.

This is the first time that Citi has admitted that the security breach has resulted in financial loss to customer accounts. Citi said earlier this month that it discovered the breach on May 10 through routine monitoring. More than 360,000 accounts had some information stolen, including names, account numbers and e-mail addresses. Since then the bank has been actively replacing cards and has changed 217,000 cards so far.

Citigroup disclosed the losses when briefing government officials this week about the breach. The size of the losses is a fraction of recent annual totals of $48 billion in identity fraud losses and 9.9 million customer victims, according to data on CreditCards.com.