Citigroup Mistakenly Credited $81 Trillion in Someone’s Account, But Took it Back
In April 2024, Citigroup intended to process a $280 payment into a customer’s escrow account in Brazil. Due to an input error, the transaction amount was entered as $81 trillion—a sum exceeding the combined Gross Domestic Product (GDP) of all nations worldwide. Initially, this colossal error went unnoticed by both the payments employee who entered the transaction and a second official assigned to verify it. The mistake was eventually identified 90 minutes after posting, when a third employee detected discrepancies in the bank’s account balances. The erroneous transaction was subsequently reversed several hours later, ensuring that no funds left the bank.
This incident is not isolated but rather indicative of recurring operational challenges faced by Citigroup. In 2020, the bank mistakenly sent $900 million to creditors of the cosmetics company Revlon, an error attributed to manual processing flaws and outdated technology. Such incidents have prompted regulatory scrutiny and significant fines, including a $400 million penalty in 2020 for deficiencies in risk management and data governance programs.
Despite efforts to enhance its systems under the leadership of CEO Jane Fraser, who assumed her role in 2021, Citigroup continues to grapple with these issues. In 2024 alone, the bank reported ten “near miss” incidents involving amounts of $1 billion or more, slightly down from thirteen such cases the previous year. These near misses refer to situations where incorrect transactions are identified and rectified before causing financial harm. n
In response to these operational lapses, Citigroup has been working to overhaul its internal processes. The bank has invested heavily in technology upgrades and has undertaken a comprehensive project known as “Transformation,” involving approximately 12,000 employees. This initiative aims to automate controls, reduce manual processes, and improve data management to satisfy regulatory requirements and enhance overall efficiency.
Despite these efforts, regulatory bodies have continued to express concerns. In 2024, Citigroup was fined $136 million for failing to make sufficient progress in addressing its risk management and data governance issues. These penalties underscore the ongoing challenges the bank faces in rectifying its internal control deficiencies.