Michael Zidell filed a federal lawsuit against Citibank, claiming the bank failed to take action to prevent large transfers linked to a romance scam.
Nature of the Lawsuit Against Citibank
Zidell accuses Citibank of negligence as the bank processed 12 transfers totaling about $4 million, which he believes were linked to scammers. He asserts that the bank should have noticed suspicious transaction patterns and taken action.
The 'Pig Butchering' Scam
Zidell lost $20 million due to a complex romance scam. The scam began in early 2023 when a fraudster posing as Carolyn Parker convinced him to invest in non-fungible tokens through a platform. Ultimately, Zidell made 43 transfers to various accounts associated with the scammers, and by the end of April, the platform vanished.
The Growing Impact of Romance Scams
Romance scams are becoming a multibillion-dollar business. Last year, victims reported losses of over $5.5 billion in 200,000 cases. It is projected that in 2024, cryptocurrency-related fraud will result in around $9.9 billion in losses.
Michael Zidell’s lawsuit against Citibank raises significant questions about the role of banks in detecting and preventing financial fraud, especially in light of the growing impact of romance scams on consumers.
