- Associated Press - Monday, July 26, 2010

SEATTLE (AP) - Citigroup Inc. said Monday that its iPhone banking program has been saving customer account information in hidden files on users’ smart phones and computers.

“We have no reason to believe that our customers’ personal information has been accessed or used inappropriately by anyone,” said spokeswoman Natalie Riper in a statement. “There has been no data breach.”

The Citi Mobile iPhone banking program let U.S. Citibank customers see their account and credit card balances, pay bills and transfer money, and helped them locate nearby ATMs. The hidden files were logging account numbers and bill payment information, among other data.

The company said it has updated the program so that it deletes the sensitive information on iPhones and computers the devices connected to using Apple Inc.’s iTunes program, and so that information isn’t stored in the future. Riper said Citibank is telling people who downloaded the app about the update.

The company said its other apps and mobile services do not have this problem.