Account frozen: what to do

What does it mean when an account is frozen?

If your bank, payment app, or exchange freezes your account, it usually means you can't withdraw, send, or spend until they finish a review. Some activity might be allowed, but often you're blocked from most uses. Usually, this freeze is a temporary response while they check into something.

It's a different situation from having your account closed. In a closure, your relationship with the provider ends for good. In a freeze, they're holding all or part of your funds while they sort things out. Certain features (like only outgoing payments) might still work, depending on what they've restricted. Or if only one payment is paused, that's handled differently; you can read more about single payments on hold at why a money transfer is on hold.

Common reasons providers freeze accounts

• Activity that doesn't fit your usual pattern, such as logging in from a new phone, or sending funds that look suspiciously like fraud or account takeover attempts.
• Your identity documents are expired or missing. Providers must request and verify these under know your customer (KYC) regulations.
• Possible anti-money laundering (AML) or sanctions issues connected to a transfer or to people you transact with.
• Legal instructions: sometimes a bank receives a court order or instruction from an authority and has to apply a restriction.
• You're using the account for something their rules prohibit, such as running a business through a consumer-only service.

And sometimes, regulations prevent the provider from telling you the real or full reason right away, especially if the case involves law enforcement or a confidentiality order.

How to resolve or escalate a freeze

1. Look closely at any message from the provider, and check if there's a deadline for your response.
2. Reply in writing. Send any paperwork or other information they ask for, and save copies for your records. For help with this, our guide on proof of source of funds describes which documents are usually accepted (for example a payslip, a sale agreement, or a bank statement).
3. Request specific details: what is wrong, what happens next, and when they expect to decide.
4. If you believe the freeze is a mistake or your account was used by someone else, make that clear straight away.
5. If you don't get a reply or the issue isn't fixed, use the provider's complaints process. If you still can't resolve things, you may be able to contact an ombudsman to review your case. More on this in our article on how to complain about a financial provider.

Frequently asked questions