(Reuters) – Citigroup Inc agreed to pay $25.9 million to settle U.S. Consumer Financial Protection Bureau charges it intentionally discriminated against credit card applicants who the bank identified as Armenian-American based on their last names.

The regulator said that from 2015 to 2021, Citigroup intentionally stereotyped people it suspected were of Armenian descent, targeting people whose last names ending in “ian” and “yan,” believing they were likely to commit fraud.

Many of the victims were in Glendale, California, sometimes known as Little Armenia, which is home to about 15% of the Armenian-American population.

The payment includes a $24.5 million fine as well as $1.4 million to harmed customers.

Citigroup apologized, saying it had been trying to thwart an Armenian fraud ring operating in California.

“While we prioritize protecting our bank and our customers from fraud, it is unacceptable to base credit decisions on national origin,” the bank said.