Reasons- Why you have a Frozen Bank Account

A frozen bank account can land you in trouble. It can be frustrating when you try to access your online bank account from a foreign country.

A frozen bank account may result from suspicious bank account activity or unpaid debts.

What is a frozen bank account and why would my bank account be locked?

When you are unable to access your online bank account and make transactions, your bank account may be locked. You may also be restricted from withdrawing money, paying cheques, and conducting online transactions.

Who can freeze my bank account, and how can I unfreeze it?

Only banks can freeze bank accounts due to several reasons. If you find yourself in such a situation, immediately contact your bank to unfreeze your account.

Is it common to get your Bank Account Frozen due to Suspicious Activity?

Finding yourself locked out of your bank account is more common than you think. It usually happens when you travel abroad, or when you are making a booking at a foreign location.

Why would a bank freeze an account?

Now, this is important.

Let us analyze why, and when do banks get your bank account locked.

Whenever you start surfing the internet, any web page you interact with can see your IP address. In case you’re not aware, your IP address contains important information about you. This includes your current location on the map.

This means that if you are in Detroit, any website you visit will receive this information next to your IP address.

Like any other website, banks can also see your present location when you try to access your bank account. And unless you’ve been living under a rock, banks put great focus on the security of your bank account. This is why they’d find it very suspicious if your account is accessed from a foreign location.

The same happens when you try to use your ATM or credit card from a foreign location. Your bank would immediately flag this as suspicious activity and probably block you from accessing your account.

How Do You Know if Your Bank Account is Frozen?

It’s easy. If you’re unable to access your account despite several attempts, there is a high chance that your bank has got your bank account frozen. You’ll probably see a message on your screen that says: “Bank Account was locked due to Suspicious Activity”

If you have a frozen bank account, you won’t be able to use your ATM and Credit/Debit cards. Each time, you’ll see an error message on the screen, and any transaction you make will fail to process.

How long Can a Bank Account be Frozen?

That depends on how quickly you can take action. Bank Accounts usually stay frozen until the misunderstanding between you and your bank is cleared.

The best thing to do is to contact your bank immediately and try to diffuse any misunderstandings. You will probably be asked some questions, and once your bank is satisfied, it will unfreeze your account, and you will be able to access and use it.

Here’s What You Can Do to Avoid a Frozen Bank Account?

The best way to avoid a frozen bank account is to inform your bank of your intention to travel. You can call your bank and inform them of your intentions. Or you can set up an alert online via your banking app so that your bank knows that you’ll be traveling to a foreign location soon.

But if you’re too lazy to call your bank each time you travel abroad, you can do it instead by getting a VPN. A good VPN can easily help you avoid a frozen bank account. But how does it do that? Let’s find out.

Frequently Asked Questions

Can I still access my money in a frozen account?

It depends on the reason for the freeze and the regulations of your bank or financial institution. In most cases, you will not be able to access the funds in a frozen account until the freeze is lifted.

What is a frozen bank account?

A frozen bank account is a type of financial hold that restricts access, withdrawals, or transfers. A bank or other financial institution can freeze an account in response to a court order, a government request, or suspicious activity.

How can I get my frozen bank account unfrozen?

The steps to unfreeze a bank account vary depending on the reason for the freeze. You may need to provide documentation, resolve any outstanding debts or work with a government agency to lift the freeze. It’s best to contact your bank directly and discuss the steps you need to take to unfrozen your account.