I deposited checks/money orders that were fraudulent or did not clear. The bank took the money from my checking account and then froze and/or closed my account. Can it do this?
Generally, your bank may freeze a transaction or close your account due to fraudulent activity, or for other reasons explained in your deposit account agreement. You should review the deposit account agreement given to you at the time the account was opened for policies specific to your bank and your account.
Depending on the circumstances, you may be held responsible for the amount of a fraudulent check or money order that you cash at your bank or deposit into your account. If your bank credited your account for the value of the check or money order that is found to be fraudulent, the bank can reverse the funds from your account. If you wish to seek reimbursement because you believe you are owed the funds, you must pursue the person who paid you with a fraudulent check or money order.
If you believe your bank wrongfully closed your account or wrongfully froze a transaction, file a written complaint with the bank’s regulator. Information on how to determine your bank’s regulator is available on the Who Regulates My Bank page. If your bank is a national bank or federal savings association, file a written complaint with the Office of the Comptroller of the Currency (OCC) by contacting the OCC’s Customer Assistance Group.
Last Reviewed: October 2025
Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.