NEW YORK, Jan 21 (Reuters) - A federal judge on Tuesday

rejected Citigroup's ( C/PN ) bid to dismiss a lawsuit by New York

Attorney General Letitia James accusing its Citibank unit of

failing to reimburse customers who fall victim to online

scammers.

U.S. District Judge Paul Oetken in Manhattan said Citigroup ( C/PN )

must face James' claim it violated a federal law concerning

unauthorized wire transfers, and parts of three other claims. He

also dismissed some claims, in part because federal law

preempted them.

James sued Citibank in January, saying the inability of its

security systems to investigate red flags such as unrecognized

devices, changes in user names and passwords, and "phishing"

enabled scammers to steal millions of dollars from customers.