Citigroup Admits that Customers' Data was Hacked

Citigroup C is acknowledging that its customers were subject to a security breach that may have compromised their accounts, an unwelcome blow to the recovering bank. “During routine monitoring, we recently discovered unauthorized access to Citi's Account Online,” the bank said in an e-mailed statement. “We are contacting customers whose information was impacted.” While the bank noted that only 1% of accounts were affected, Citibank has more than 20 million customers in North America. “Citi has implemented enhanced procedures to prevent a recurrence of this type of event,” the bank said. “For the security of these customers, we are not disclosing further details.” The bank is still recovering from a difficult past few years, as it unwinds its bailout from the U.S. government. CEO Vikram Pandit has made drastic moves to shore up the company's balance sheet to attract investors and improve future prospects. Regarding the hack, Citi notes that names, account numbers, addresses and e-mail addresses were exposed. The statement says that “social security number, date of birth, card expiration date and card security code (CVV) were not compromised.”