Citigroup (C) has publicly acknowledged being the victim of a devastating cyberattack earlier this year. According to Bloomberg News, about 3,400 customers lost $2.7 million when their credit-card information was breached by online hackers.
The customers will be reimbursed for their loss, Sean Kevelighan, a spokesman for the New York-based bank, said in a Bloomberg phone interview today. Over 200,000 Citi customers were issued new cards with a notification letter.
Citigroup said recently that more than 360,000 credit- card accounts, or 1.5% of the bank’s total in North America, may have been compromised by hackers in May.
“Citi immediately rectified the data breach upon discovery, while also placing internal fraud alerts and monitoring on all accounts at risk,” Kevelighan said in an e- mail to Bberg earlier this month. “Simultaneously, we began analysis to determine the precise accounts and type of information accessed.”
Experts have suggested that online hackers used spyware to obtain data from clients of the third-largest U.S. bank as they logged in. But with more than 150 million Americans using credit cards, the frequency of such hacks is most likely to rise.
At last check, Citi shares were up $0.44 to $40.03, a gain of 1.11% on 16 million volume.