Blocked Account
Its everyone’s dread, you shopping at the checkout ready to pay, you are in a hurry to get home but your card isn’t working and your account has been blocked. Angry and confused, you leave the shop… You know you have money in there, you know it hasn’t been stolen so why?
You hear about people and you maybe one of them, that have experienced your bank account being blocked. This blog will explain some of the reasons why this happens and what you can do.
Everyone knows that banks will freeze an account when reported stolen or if you have attempted fraud. For the average person who has neither of the above it can be frustrating at best and really problematic at worst.You hear about people and you maybe one of them, that have experienced your bank account being blocked. This blog will explain some of the reasons why this happens and what you can do.
Everyone knows that banks will freeze an account when reported stolen or if you have attempted fraud. For the average person who has neither of the above it can be frustrating at best and really problematic at worst.
What it means if your account is blocked
When your account is blocked it means you can’t make any purchases using your debit card. It also means any direct debits or standing orders will not be processed. Access to your funds will also be blocked therefore, you can’t withdraw cash out at ATM or Post Office and you can’t make any payment transfers.
The main reasons accounts are blocked:
- Reported lost or stolen
- Suspicious transactions
- Suspected fraud
- Disputes with your bank
- To protect you from unauthorised access
- Lack of use
Many people assume their digital bank decides when an account is blocked, but that isn’t always the case. The rules around account freezing and transaction processing are usually set by the issuing bank — the regulated institution that supports the account and works directly with Visa or Mastercard. This issuing bank defines how the account operates, including the features available and any restrictions that may apply
Why is it happening more often?
In 2023, the UK introduced the Economic Crime and Corporate Transparency Act, updating existing laws to give authorities stronger powers to combat money laundering and recover criminal assets. The Act builds on the Proceeds of Crime Act and continues to be rolled out through additional regulations. As a result of the law changes and Proceeds of Crime act in 2022, this is now a much more common reason that banks freeze accounts, even if it for a really small payment
According to UK Finance, £629.3 million was stolen in the first six months of 2025 — a 3% increase compared with the same period in 2024.
There were 2.09 million confirmed fraud cases, up 17% year-on-year from the first half of 2024. This includes both authorised and unauthorised fraud.
The 2.09 million confirmed cases over six months equate to over 11,500 cases per day, which is around 480+ cases per hour if averaged evenly — highlighting the relentless pace of fraud attacks across the UK.
What to do if your account is blocked?
Contact your bank and find out. It can be a quick and easy process.
Access your online banking and check if there have been any payments made or received out of the ordinary
Open a new bank account
How do I avoid being blocked in the future?
Your account might be frozen if you’re using it in a way that you shouldn’t, for example:
It is not possible to predict when your bank will freeze your account but to minimise the chances of your account being block we suggest you:
- Contact your bank if you are expecting a one off or large payment into your account or going out of your account. This will give the Fraud team better information and they may be less likely to freeze the account if it is an expected payment.
- Ensure you used pins entry after your 5th contactless payment
- Don’t give your debit card to anyone else to use or your online banking login details
- Understand the limits to your account and don’t use it outside of those limits
Summary
In summary, having your account frozen can be a really difficult time and cost you money if direct debits bounce. The banks are legally bound through the POCA (Proceeds of Crime Act) to monitor every transaction on your account. Most of the payment monitoring is conducted through technology with rules pre-set by the issuing bank. This monitoring is in place to protect you from fraud and accounts that have been frozen, if there has been no suspicious activity will be unfrozen quickly.
