Major UK bank locks account, interrogates customer over crypto buy

Tuesday 14 January 2020, 3:00 AM AEST - 8 months ago

Major UK bank locks account, interrogates customer over crypto buyOne of the UKs largest financial institutions, Lloyds Bank, reportedly locked a customers account over cryptocurrency-related activities – and it isnt the first time it has done this.

Founded in Birmingham in 1765, Lloyds Bank is one of the oldest and largest financial institutions in the UK. It is one of the Big Four clearing banks and services more than 16 million customers across England, Scotland, Ireland, and Wales.

One of those customers, a Reddit user named matcheek, posted last week about how Lloyds Bank locked his account not once, but twice, in the span of two days because of cryptocurrency purchases he made.

The post was deleted from the r/Cryptocurrency subreddit for unknown reasons, but Micky contacted the Redditor, who was able to provide details about the incident.

I bought some crypto recently. The test a new exchange have made a small transaction and bank blocked the transfer. I called the bank. They asked me a few questions, put me on hold for 10 minutes and lifted the lock, he explained.

But the previous transaction was just to test the waters. The day after I put another order for more crypto. Bank locked my account (not just the card) again but this time it was a 2nd level fraud suspicion – needed to physically go to the bank to unlock it.

Lloyds Bank locks Reddit users account over crypto purchasesInterrogation over crypto activities

When matcheek visited his local Lloyds Bank branch to clear up the matter and unlock his account, he found himself subjected to what amounted to an interrogation regarding his crypto activities.

These are just some of the questions that matcheek had to answer in order to be able to regain access to his funds:

  • Are you aware of the fraud taking place in the cryptocurrency market?
  • Is there any particular reason you are taking the risk with your savings by transferring them to such a low credibility merchant?
  • Have you bought cryptocurrencies before?
  • How much did you give them?
  • Who are you going to transfer the money to? Do you know the name of the company?

The accou ...

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