Product: Checking or savings account

On Saturday XX/XX/2021, my niece came to me and asked me if i could get her check cashed from her job. She lost her ID and it hadn't been dealt with at that time. So before I even tried I called customer service at my bank and talked to a nice lady. She told that I could use mobile check deposit to deposit my nieces check as long as she signed it over to me. And she told me exactly how to word it. I asked is there anything else that i need to do or anything my niece has to do. The lady said no. So i did exactly as the customer service lady said to do. 
The weekend past with no word but just figure its probably because of it being a weekend. So Monday XX/XX/2021 comes around no deposit or any word. So I call and talk to customer service again. I talked to a guy that told me to just wait until tomorrow because it takes 1 business day to process. If doesnt come through tomorrow then call back and talk to loss and prevention and they could push the check through for you. I said okay. Overnight I noticed the bank put a hold on the account So the next day, still no deposit. Account still says on hold. XX/XX/2021. So I called customer service and talked to a lady that transfered me to the check department. And the man that i talked was rather rude. At one point he put me on hold for almost an hour. He then told that they couldn't verify that basically my niece gave me her check to deposit. I repeatedly told them that she did. I even gave them her number to call. He took her number and looked it up saying " this is not a authorized number ''. I asked him what that meant and he would never answer me. I asked him serval times to call her. He laughed saying he cant do that. I said i could hand her the phone and he said " no we have to make contact ''. I told then call her. Again he laughed said he couldn't do that on my word. He then told me that i need to bring my niece and myself to a branch with 2 forms of ID. I told him 1. I lived no where close to a branch. 2. She doesn't have ID that's why opted to do it this way. I informed that their customer service said i could do this. Again he laughed and said, " If you cant verify the other person and the check in 10 business days then the bank will close down your account ''. I told him that's not fair when its their customer service said i could this. I have this account for my job because they partner with them. Also all my tax refunds come to this account and that's not right. He said sorry and hung up. 
I waited a few moments and called back. I got a nicer guy and explained what was going on. When he did what the other guy did. I asked them to cancel the mobile deposit. He said they cant without verifying everything 1st. He let me know that they are considering this fraud. I told him no its not. They would find this out if they would call my niece or talk to her on my phone because she lives with me. He told me to go to a branch no matter that without the check i don't have enough gas to go anywhere between 2-3 hours to the closest branch. Before hanging up he told me that my account is restricted meaning if i get any tax refund or future stimulus that it would be sent back for me and my fiance that both use this account. 
I don't think they should close my bank just because of this. Its not fraud. I did what their customer service said but i get penalized for it.