Disabled veteran's bank account funds frozen after reporting scam

HOUSTON - A disabled veteran contacted us after she said her bank account was hit by a scammer. But she says after reporting it to her bank, her funds were frozen for a month, leaving her unable to pay her bills.

We've been warning you about growing bank scams — whether they're phishing scams, fake check scams, or scammers posing as your bank representatives in order to get your password. Victims have been losing thousands and thousands of dollars.

The problem doesn't end there. A bank can restrict your funds while it investigates fraudulent activity. A Houston woman says it left her in a bind.

Veteran says bank restriction prevented her from paying bills

The backstory:

Erica Hamilton checked her mailbox every day, hoping to find a check from her account with Chase Bank so that she could pay her bills.    

"No one understands how this is affecting me. I don’t like to borrow money from people," she said.

Back in August, she noticed someone deposited two paychecks into her account that she wasn't expecting.  

"I don’t work. I'm a disabled veteran. I’m also retired," she told us.

She says she reported the deposits to her bank. "Then I found out from the fraud guy that someone was trying to make reversals on my account. There were reversals on my credit card bills. They were reversing valid transactions that I had placed," she said.

The Better Business Bureau says these are red flags of growing scams, such as the fake check scam where victims are asked to send the money back, and fraudulent bank account breaches.

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"It can happen when you’ve been the victim of a phishing scam, for instance. Maybe you provided information to someone, maybe you thought it was the bank reaching out to you," explained the Better Business Bureau's Leah Napoliello.

Hamilton says Chase restricted her account while it investigated the fraudulent activity, but it left her unable to pay her bills.

"I still don’t have an explanation to this day as to why they were holding my funds. It has been over 30 days, I still don’t have my money," she said.  

The other side:

She contacted us, and after we contacted Chase, it sent us this statement:

"We believe Ms. Hamilton was the victim of a scam in which she shared her account information.  That person used the information to gain access to her account and initiate numerous fraudulent transactions. A counterfeit check was also deposited into the account. 
The account was restricted to protect the customer. Fraudulent transactions and checks led to a thorough review, but we have now resolved the issue and sent Ms. Hamilton her remaining funds."

Hamilton sent us a note saying, "Finally the check came Saturday ... Many thanks for hearing me out and for your help in getting me my money back."

Protect your bank account

What you can do:

Here are more tips from the BBB to protect your bank account from scams:

• Don't respond to anyone calling, texting or emailing saying they're with your bank.
• Contact your bank with the phone number on its website or bank statements to see if they are trying to contact you.
• Never give out bank passwords.
• Use multifactor authentication on your accounts.
• If you discover fraudulent activity, notify your bank, law enforcement, and the Federal Trade Commission right away.

When you report fraudulent activity to your bank, it has ten days to investigate it.

However, a bank can restrict your funds for weeks or even months while it fully investigates.  

If an ongoing restriction is blocking your access to funds, there are steps that can be taken to try to lift the restriction. The account holder can appeal the bank's decision in writing. They can also file a complaint with the Consumer Financial Protection Bureau, or consult an attorney.