Bank customers across the US are finding themselves suddenly cut off from their checking and savings accounts, with little to no explanation from their banks. This practice, known as “exiting” or “de-risking,” is part of a larger effort by banks to crack down on fraud, terrorism, money laundering, and other crimes. Banks are evicting individuals, families, and small-business owners, often without providing a clear reason. The evictions are triggered by red flags, such as suspicious transactions, that are detected by algorithms and reviewed by human employees. Banks are required by law to file a “suspicious activity report” when they see potentially illegal behavior, and the number of these reports has been increasing in recent years. However, banks do not disclose how often they are closing accounts in response to these reports, and there is little recourse for customers who are affected. In addition to the lack of explanation and recourse, customers also face difficulties in paying bills, receiving their balances, and maintaining their credit scores. Furthermore, they are left wondering if there is a black mark on their record that will lead to another account closure in the future. The banks argue that they are acting in accordance with regulatory obligations and that the majority of closures are correct. However, former bank employees argue that there is a lack of humanization in this process, with customers being reduced to numbers on a screen. The article provides profiles of customers who lost their accounts and examines the behavior that may have led to their eviction, such as a series of unusual cash deposits or a connection to the marijuana industry.
Surprising Surge: Banks Rapidly Shutting Down Customer Accounts
