Citigroup Claims New York AG’s Online Fraud Suit Is ‘Misguided’

Citigroup Inc. asked a judge to throw out a suitby the State of New York over online protections for consumers, arguing the case was a “misguided attempt” by Attorney General Letitia James to rewrite federal law.

James sued the company’s Citibank unit in January, claiming that it hasn’t enacted sufficient safety measures and security protocols to prevent fraudsters from stealing money through online and mobile banking, including wire transfers and payment apps such as Zelle and Venmo.

The state is targeting the bank’s data security measures at a time when consumers are losing billions to financial fraud and ...