Citgroup Blunders With $81 Trillion Dollar Transfer Error in Latest Banking Mishap

A monumental error at one of America’s largest investment banks has raised fresh concerns over operational controls, as Citigroup accidentally credited a client’s account with $81 trillion instead of the intended $280 transfer.

The colossal mistake, classified as a “near miss” incident, occurred in April when two payment officials failed to spot the error before approval. The blunder was ultimately detected within 90 minutes by a third employee who noticed discrepancies in account balances, with the transaction reversed several hours later.

The incident, which was reported to both the Federal Reserve and the Office of the Comptroller of the Currency (OCC), represents one of ten such billion-dollar near misses at Citigroup last year. Whilst this marks an improvement from 13 similar incidents the previous year, it highlights ongoing operational challenges under Chief Executive Jane Fraser’s leadership.

A Citigroup spokesperson emphasised that despite the scale of the error, preventative controls would have blocked any actual fund transfers. The bank acknowledged the incident underscores their need to eliminate manual processes and strengthen automated controls through their transformation programme.

The banking sector has witnessed numerous costly mistakes over the years, including Citigroup’s own £1.4 billion trading error in European equities in 2022. The latest incident adds pressure on Fraser, who since her 2021 appointment has prioritised addressing regulatory concerns.

The revelation follows recent regulatory penalties, with Citigroup being fined $136 million by the OCC and Federal Reserve for inadequate risk control and data management practices. Chief Financial Officer Mark Mason recently confirmed increased investment in compliance measures, particularly focusing on data quality and technological infrastructure improvements.