Consumer complaint received 2024-07-24
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: U.S. BANCORP (OR)

Report : Closure of U.S. Bank Checking and Savings Accounts Following Fraud Incident Overview On XXXX XXXX XXXX, I reported fraudulent activity on my U.S. Bank checking account to the bank 's fraud department. Following the report, I was informed that a temporary provisional credit would be placed on my account pending the conclusion of their investigation. During my conversation with the fraud department, I mentioned that I suspected I had fallen victim to a phishing scam, which I believe led to the compromise of my account.

Phishing Scam Details In XXXX XXXX I received an email that appeared to be from a personal investment account provider with whom I have an account. The email requested that I verify my identity by providing all my card and account information. Trusting the legitimacy of the email, I complied with the request. I now realize this was a phishing scam designed to obtain my sensitive information. 
Discovery of Fraudulent Activity Following my response to the phishing email, unauthorized transactions occurred on my U.S. Bank checking account in XXXX XXXX XXXX XXXX. I remained unaware of these fraudulent activities until XXXX XXXX XXXX, when I discovered the irregularities and promptly reported them to U.S. Bank 's fraud department. The bank assured me that temporary funds would be credited to my checking account during the investigation.

Subsequent Actions and Account Closures On XXXX XXXX XXXX, I noticed another fraudulent charge on my checking account. To mitigate further losses, I transferred the available funds from my checking account to my savings account. Later that morning, I withdrew {$2000.00} from my savings account to cover my son 's initial college expenses, opting to pay in cash to avoid any issues with my blocked debit card.

Despite these precautions, by XXXX XXXX XXXX XXXX XXXX XXXX U.S. Bank blocked all accounts held in my name and my wifes name, freezing all funds. This included two checking accounts and one savings account. It is important to note that only one of the checking accounts was compromised and under review as requested. My primary checking account, which is shared with my wife, and had no fraudulent activity, was also blocked and frozen. This account is crucial for managing our household expenses and paying bills. 

Additionally, my individual savings account, which I had transferred funds into from the compromised checking account on XXXX XXXX XXXX, was also blocked and all funds frozen, totaling over {$6000.00}. I have no access to these funds, which are essential for our daily living expenses. 

mpact and Concerns The closure and freezing of all my accounts, including those unaffected by the fraudulent activity, have caused significant inconvenience and financial hardship. I trusted that reporting the fraudulent activity and following the proper procedures would safeguard my accounts and funds. The actions taken by U.S. Bank have left me unable to access my legitimate funds, impacting my ability to meet financial obligations and manage my household expenses. 

While I understand that the funds may be under review due to the fraudulent activity claim, I believe I should still have the right to move or withdraw funds as needed. The fraudulent activity reported on XXXX XXXX XXXX, involved funds that had already been processed out of my account and were no longer available to me. Therefore, the funds transferred from checking to savings on XXXX XXXX XXXX should not be subject to the same review constraints.

Interaction with U.S. Bank Branch Manager On XXXX XXXX XXXX, I met with the branch manager at the Wilsonville, Oregon location to seek clarification on the status of my accounts. Unfortunately, the branch manager was unable to provide additional information on why my accounts were abruptly blocked and frozen. I was able to open a new checking account during this meeting, yet I was not able to access any of my blocked and frozen funds to add to my new checking account. 

Conclusion I am in a very difficult position at this time and am requesting that all funds be made available to be added to my new checking account at U.S. Bank as soon as possible. The inability to access these funds is causing severe financial hardship and will have catastrophic consequences if not addressed immediately. I urge U.S. Bank to expedite the review process and restore access to my funds to prevent further harm to myself and my family.