Banks Are Closing Customer Accounts, With Little Explanation

Naafeh Dhillon had just left the holiday light show at Saks Fifth Avenue in New York when he learned that all of his bank accounts had mysteriously gone dark. After the show, Dhillon, his girlfriend and some friends escaped the cold and had dinner at a French bistro — but 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, he figured, because he had plenty of money in his account. Sign up for The Morning newslette

Highlights

• Some people are suddenly losing access to their bank accounts without any warning, but it is often unclear what activity was flagged as suspicious.
• With fraudulent activity on the rise, some banks are taking an even harder look at their customers’ transactions.
• Financial institutions filed 1.4 million of Suspicious Activity Reports in 2021, Treasury Department says.
• A study from the Bank Policy Institute found that a median of just 4% of 640,000 SARs from a sample of large banks warranted a follow-up from law enforcement, the research says.
• Some of the most of the time, the customers are probably innocent, but not all are closing accounts.

---

Read the original article