Citibank hit with $3.5M fine over fraud oversight failure. The bank failed to catch fraudulent withdrawals in a timely manner, leading to regulatory action. This case highlights the critical gaps in traditional banking's fraud detection systems—something that blockchain's transparent ledger approach inherently addresses differently. Centralized institutions managing billions still struggle with basic security monitoring, raising questions about whether decentralized protocols might better handle transaction validation and fraud prevention. Worth considering when comparing institutional risk profiles.