Citigroup mistakenly transferred $81 trillion to a customer’s account last year instead of the intended $280. The erroneous transaction, which occurred in April, went unnoticed by two employees but was flagged within 90 minutes, according to a report from the Financial Times. The bank promptly reversed the payment within hours and informed the Federal Reserve and the Office of the Comptroller of the Currency, categorizing it as a “near miss.”
Operational Errors at Citigroup
This incident adds to a series of operational missteps that the banking giant has been trying to rectify. Citi confirmed that detection mechanisms quickly identified the input discrepancy between its internal ledger accounts. The bank emphasized that its preventive controls would have stopped any unauthorized fund transfers.
“While this incident did not impact Citi or our client, it reinforces our ongoing initiatives to automate controls and reduce manual errors,” the bank stated.
Regulatory Scrutiny and Past Errors
Near misses, where incorrect amounts are processed but later recovered, have been a recurring issue at Citigroup. The bank reportedly suffered 10 near misses of $1 billion or more in the past year, following 13 similar incidents the year before.
The institution has been working to restore credibility since a major blunder five years ago—when it unintentionally wired $900 million to creditors tied to Revlon. That failure led to leadership changes, regulatory penalties, and compliance directives aimed at strengthening Citi’s operational risk framework.
CEO Jane Fraser has made risk management a top priority. However, regulators fined the bank $136 million last year for insufficient progress on mandated reforms.
As Citigroup continues addressing internal lapses, the financial sector remains watchful of its ability to prevent future missteps that could impact both the bank and its customers.
