A federal judge rejected a bid to dismiss a lawsuit by New York Attorney General Letitia James claiming it failed to protect customers.

Citigroup faces legal challenges as fraud claims proceed, exposing flaws in its security systems & raising concerns over banks’ role in combating cybercrime.

A federal judge on Tuesday rejected Citigroup's bid to dismiss a lawsuit by New York Attorney General Letitia James accusing its Citibank unit of failing to reimburse customers who fall victim to online scammers.

The ruling lets state Attorney General Letitia James continue arguing Citi should have reimbursed customers for wire fraud, though some claims were dismissed.

New York Attorney General Letitia James has announced a court victory allowing her lawsuit against Citibank to proceed, as a judge denied the bank's motion to dismiss key claims. The lawsuit alleges that Citibank did not adequately protect customers from fraud or reimburse victims as required by law.