Innocent clients are being abruptly shut out of US institutions, according a recent research. According to the New York Times, sudden account closures brought on by allegedly suspicious activity are making customers realize something is amiss when they want to spend their money.
Naafeh Dhillon, one of these Chase members, attempted to pay for supper in December but both his credit and debit cards were rejected. He called the bank, and a support representative informed him that Chase had fired him and that a notice had been sent.
The reason? A “surprise activity.”Chase gave Dhillon a cashier’s check for his balance when he went to the bank without providing any additional information.
Dhillon has been residing legally in the US since 2013, and ever since his arrival in New York, his family in Pakistan has routinely sent him money via wire transfer.
These bank account closures seem to be related to initiatives to stop illegal activities.
According to recent data, fraud of all kinds is increasing at financial institutions and affecting all payment methods.
According to the Banking Policy Institute, however, just 4% of Suspicious Activity Reports (SARs) given by banks to law enforcement result in a follow-up, and a very small percentage of the follow-ups end in arrests and convictions, as the Times points out. The bank initiated an investigation after the Times contacted them, and staff later claimed they could not establish that Dhillon had broken any laws.
For breaking the Bank Secrecy Act and neglecting to report suspicious activities tied to the notorious conman Bernie Madoff’s billion-dollar Ponzi scheme, US law enforcement agencies fined Chase more than $2 billion in 2014.
According to the financial violations tracker from Good Jobs First, Chase has paid more than $36 billion in fines for financial offenses, employee offenses, competitive violations, abuses of hazardous securities, abuses of mortgages, shortcomings in anti-money laundering, and other offences since 2000.