topic Re: Banks Are Closing Customer Accounts, With Little Explanation in Credit in the News

Banks Are Closing Customer Accounts, With Little Explanation

Yawgoog — Sat, 08 Apr 2023 15:25:39 GMT

Banks Are Closing Customer Accounts, With Little Explanation

https://www.nytimes.com/2023/04/08/your-money/bank-account-suspicious-activity.html

Re: Banks Are Closing Customer Accounts, With Little Explanation

Gunnerboy — Sat, 08 Apr 2023 15:42:33 GMT

Paywall.

Re: Banks Are Closing Customer Accounts, With Little Explanation

WildestDreams — Sat, 08 Apr 2023 16:18:41 GMT

I don't want to copy and paste the entire article its basically about a few people who had accounts closed.

when it came time to pay the check, his credit card was declined. His debit card was rejected next. It had to be some sort of mistake. When he returned home that mid-December evening and called his bank, Chase, a customer representative delivered the unexpected news: The bank had dumped him as a customer. The rep said he should have received a letter in the mail but couldn’t say much more than what was in the notice — “unexpected activity” had led to the closing of his accounts. The letter stated "After careful consideration, we decided to close your accounts because of unexpected activity on this or another Chase account"

Another person was frozen out...

After taking a loan from his 401(k) in mid-January, he tried to transfer the money into a new high-yield savings account at Synchrony... he then transferd some of it — a sum larger than $10,000 — to his checking account at TD Bank.

But once he tried, he received a notice that the transfer had been suspended and that his account was frozen. He immediately called Synchrony, which wouldn’t provide any more details. - They said your account has been suspended for further review

The article also talks about how banks can close accounts at any time, mentions having a diversification strategy aka a back up bank plan and goes on to say

According to the Consumer Financial Protection Bureau, at least twice as many aggrieved account holders complained about checking and savings account closures last year as they did in 2017.

Re: Banks Are Closing Customer Accounts, With Little Explanation

M_Smart007 — Sat, 08 Apr 2023 20:34:22 GMT

Having a back up plan, is always a great strategy.

“Two is one and one is none” is a way of stressing the importance of a good backup plan. It illustrates that having only one of something is the same as having none while having two of something is just like carrying one.

Re: Banks Are Closing Customer Accounts, With Little Explanation

AndySoCal — Sat, 08 Apr 2023 22:21:39 GMT

@Yawgoog @WildestDreams @Gunnerboy @M_Smart007 The link below is a non paywall version of the article

https://news.yahoo.com/banks-closing-customer-accounts-little-141130517.html

As the article states fraud is running at an all time high. There stories about people losing their life time savings to the fraudsters. I will say this about the the fraudsters they are very good at it. I will give you a very small example. A lady walks into a bank where the check is written on and wants to cash it ($175) with a comment on the memo line baby sitting. Since the customers' account was one of their accounts the teller pulls of the account. The customer profile is a single man of 60+ years. The memo line and the profile do not match. The customer gets a call from the bank a long story short it was fraud. The check was washed and the payee name was changed and the memo line was added. I would strongly suggest you use gel ink pens if and when you write check(s) it helps prevent this type of fraud The customer's checking account was mine. The bank did not cash the check. This is why a I am very happy when a bank does their due dilligence. When a customer's profile and the transaction(s) do not match that profile it will raise questions and action will be taken.

Re: Banks Are Closing Customer Accounts, With Little Explanation

805orbust — Sat, 15 Apr 2023 06:25:02 GMT

@AndySoCal you're absolutely right. The teller at TD Bank was telling me the other day about all the people who walk in with fraudulent checks and other things tryna scam... I couldn't believe it. Why!?!?

Re: Banks Are Closing Customer Accounts, With Little Explanation

AndySoCal — Sat, 15 Apr 2023 21:36:27 GMT

@805orbust If fraudster is able to hack the right customer this can mean thousands of dollars in their wallet. The vast majority of the time when the money leaves the victims account it is never recovered for the victim.

Here is couple of more scams

Man loses $2,800 after fraudster impersonates his bank. Here’s how it happened. - nj.com

I have seen this type of scam work for much larger sums than is involved in the link. Why? Beacuse the fraudster is very good at doing what they do.

Fraud using Zelle

https://www.nj.com/news/2022/02/man-loses-2800-after-fraudster-impersonates-his-bank-heres-how-it-happened.html

This still happens and it still sucessfull

I received an email from Amazon the other day. Below is the essence of the message

We initiated takedowns of more than 20,000 phishing websites and 10,000 phone numbers that were used as part of impersonation scams.

We referred 100s of bad actors across the globe to law enforcement to help them ensure these scammers are held accountable.

Now for the important part. Here is a link to help people identify potential fraud

https://www.lakelandbank.com/about/simply-speaking/?news_cat=privacy-cybersecurity&news_article=the-questions-your-bank-will-never-ask-you

Re: Banks Are Closing Customer Accounts, With Little Explanation

805orbust — Sun, 16 Apr 2023 02:51:34 GMT

Ugh... that sucks @AndySoCal You would think with that level of skill certainly they could do something legitimate instead.

Re: Banks Are Closing Customer Accounts, With Little Explanation

pcmedic2k — Sun, 16 Apr 2023 14:42:57 GMT

@AndySoCal wrote:
@Yawgoog

Problem is Gel-Ink pens tend to smear