Citigroup mistakenly credited a customer’s account with $81 trillion instead of $280 in an error that occurred last April. The mix-up happened due to a missed internal transfer by a payments employee, which was then overlooked by a second employee tasked with verifying the transaction. Fortunately, a third employee identified the error 90 minutes after the payment was processed, and the funds were reversed hours later. Citi confirmed the mistake was a result of a manual error, not related to any accounting or financial controls. They emphasized that the bank’s detective controls quickly detected the mistake, preventing any actual funds from being transferred.
Citi’s $81 Trillion Error Highlights Need for Automation and Strong Controls
While the error didn’t harm Citi or the client, the incident highlighted the importance of eliminating manual processes and automating controls. In 2024, Citi invested $11.8 billion in technology, focusing on digital innovation, product development, and cybersecurity. Stacey Ritter, an assistant professor of accounting, pointed out the inevitability of human errors and stressed the importance of strong controls to identify and correct mistakes promptly. The Citi error was resolved within 1.5 hours, demonstrating the effectiveness of its detection systems.Citi had 10 “near misses” in 2024 involving amounts over $1 billion, incidents where funds were mistakenly credited but were recovered. To minimize such risks, maintaining robust controls and attracting skilled accountants is essential. However, the accounting profession is facing challenges with a shortage of certified public accountants, exacerbated by retirements and burnout among existing professionals. To address this, companies are increasingly adopting technology, which could attract the next generation of accountants, offering a more modern work experience.
