Yes, locking an account and then having no clear, expeditious method for a customer to identify themself and establish that it is not fraud is a serious problem. Especially if algorithms are going to be allowed to make the judgement call about what sorts of patterns look like fraud. That may be an effective method for identifying possible fraud. But it is always going to be prone to errors. There has to be a way to deal with false positives.The SEC (based on a response to a complaint filed) is ok with 16 day business holds per Fidelity’s Reddit thread citing heightened fraud risk.
In comparison, having my desposits on hold for three weeks, at Fidelity, while pretty annoying is so much more minor. And it sounds like (hopefully) that will be resolved soon.
So in the end, there are regulations and theories about how things are supposed to go, and then there's what actually happens.
As such, I we guess we can expect to see it again and possibly at other brokers. Holds I can live with but locked accounts are worrisome.
That was my experience I had at my old bank account. They locked the account, when they thought there was fraud, and then really seemed to have no standard method for resolving the issue. It was so crazy and so irresponsible.
Statistics: Posted by cb474 — Sun Oct 13, 2024 11:32 pm — Replies 683 — Views 41427