Whether you’re protecting your own money or another person’s, you should know how to lock your bank account. This prevents anyone from accessing your account’s funds, no matter the reason, and will protect you against identity theft and other scams that could compromise your money. If someone gets access to your bank account, nothing stops them from withdrawing all of the money or even draining it completely.
What Does It Mean to Put a Hold On Your Account?
Card users can no longer withdraw funds without authorization when you put a hold on your checking or savings account. To arrange a hold on your account, visit online banking and click on Services or something similar. Then select account Holds and then Lock my account. Once you’ve done that, unauthorized users can make no transactions with that card until it is unlocked.
Why is My Bank Account Locked?
When you make a deposit or withdrawal, banks may ask for additional information to confirm it’s you. This helps them keep their data secure and prevent fraud. For example, if your bank suspects fraudulent activity on your account, they might freeze it temporarily until they verify that you are who you say you are. If you have unpaid debts with your bank, such as overdraft fees or late payments, they might also lock your account to protect their interests.
Illegal Activity That Will Cause Banks to Lock Your Account
It’s one thing to overdraw your checking account by a few dollars, and it’s another to write a check or multiple checks for amounts that total far more than what is in your account. For example, a single NSF check might result in a $20 service charge, but writing multiple NSF checks over a short period can result in an automatic lock on your account—and an investigation by law enforcement officials. This can be due to writing bad checks or money laundering. According to experts at SoFi Invest, “Funding or organizing funds for terrorist groups and organizations is an illegal activity that can also result in an account freeze.”
All About Card Locks
The best way to protect yourself from theft is by setting up a card lock on your accounts. Using a card lock makes purchasing impossible without a personal identification number (PIN). So when you place a hold on an account, the user must enter their PIN to complete their transaction each time they purchase something with that particular card.
The Risks of Not Locking Your Bank Accounts
You might be thinking, What’s so bad about having access to my money at all times? Plenty. If someone knows your PIN or can guess it, they could access your funds whenever they want—and that may not always be for innocent reasons. For billing details, you can reach out to the bank officials.
When Should I Put a Hold On My Bank Accounts?
When we have high balances in our accounts, it can often bring out unwanted attention, especially for business owners. Experts recommend you put a hold on your accounts when you know there will be an influx of transactions or funds coming into that account.
Putting a Hold On an Existing Hold
When we don’t have enough money in our checking account to cover a debit purchase, some banks will put a hold on an existing amount of money that’s already in our checking. This would prevent us from making another transaction before depositing funds into our checking account. However, if there isn’t enough money in our checking to cover both transactions, we can place a hold on a debit card purchase to complete one transaction first and then complete another.
Even if it is inconvenient at times, there are many ways to prevent identity theft, and one of them is locking your bank account. You can easily protect yourself from fraud by using a little bit of common sense.
