ubank Blocked My Account for No Reason

LTSK7 on 31/05/2024 - 23:58

Hi everyone,

Has anyone had a similar issue to mine and if so, what happened? did it get resolved? did they fully close your account?

Background:
So as of the 26th of May my Ubank account has been blocked. I received a text message the stating:

"Your card/account was recently blocked due to an attempted transaction for $9,404.82 at 19:07 AEST/AEDT. We have reviewed and removed the block. Please contact us if you are unaware of this transaction, ubank Fraud Department"

I basically just wanted to transfer that money to my other bank account. What's weird is that in the text message says "we have reviewed and removed the block". I didn't contact ubank because it wasn't a fraud and was me. I've been travelling overseas and I thought I'd try to transfer that money again today (Friday, 31.05) but I got an error message. I asked my partner to send me money to see if my account was blocked and she got the error message of "this account may be closed". I don't understand why I can't even receive money from my partner. If it was fraud, I'd understand you can't send money. But why can't I receive money?

I've called Ubank to unblock my account today (Friday, 31.05). The issue is I'm overseas, tomorrow is the weekend and I need to withdraw money. This is the only card I've brought. I've been reading on Reddit and other ozbargain posts about Ubank just locking accounts for no reason and if they ask me to do verification at a post office. I'd be very concerned if they did this to me.

Frustrating issues:
A few things that have been extremely frustrating about this is:

  1. That $9404.82 transaction was me and I didn't contact ubank because it wasn't a fraud, yet my account was blocked even though the text message says the block has been removed.
  2. The app doesn't tell you you're blocked and the only way you'd know is by trying another transaction.
  3. I can't receive my interest for the month because I can't receive funds into the account. How convenient.

Apologies for the lengthly post, let me know your thoughts and has anyone had a similar issue to mine and if so, what happened? did it get resolved?

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Comments

  • Hybroid on 01/06/2024 - 00:06
    +1

    Your activity triggered something in their system that impacted your account. No amount of discussion or postulating here will help.

    Call their fraud department to resolve any blocks/holds/investigation etc. They're available 24/7. You'll need to eat the intl call charge for not being prepared with backup card options (not even a Wise international card?).

    https://www.ubank.com.au/help/current/everyday-banking/visa-…

    • TSK7 on 01/06/2024 - 00:26

      Appreciate the comment and thanks for the advice! yeah unfortunately I don't have a Wise international card. Been surprised with using the ubank card internationally, fee free up to now. So today I called the customer service to unblock the account and confirm that the transaction was me.I actually did call their fraud department after to just chase up the unblocking but got greeted with a lady that told me 'it'll take 4 hours" and hanged up the phone on me.

    • Sinnerator on 01/06/2024 - 08:45
      -5

      this just great, we don't even own our own money anymore

      • 7ekn00 on 01/06/2024 - 10:16
        -3

        You think this is a nightmare, wait for digital IDs and digital currencies :/

    • Franc-T on 01/06/2024 - 12:47
      +2

      I buy stuff and get blocked occasionally (I sometimes buy stuff at 2am if im up etc). Id rather they over zealous with blocking than let fraud through.

  • teki n on 01/06/2024 - 00:07
    +1

    Logic is saying IP or location had been flagged by the system. Most likely it became unlocked because the device is a trusted device

    • TSK7 on 01/06/2024 - 00:30

      Thanks for the comment! Yeah I'd say you're right regarding the location probably triggered the fraud. It's still weird though that the text says the block has been removed but yet my account is still blocked. Can't send funds or even receive funds.

  • Unorthodox on 01/06/2024 - 00:53
    +11

    Did you notify them you're overseas?

    https://www.ubank.com.au/help/current/everyday-banking/using…

    They probably detected a login from overseas and given the high value put a block on it. Probably would have expected you to follow up

    • TSK7 on 01/06/2024 - 01:10

      appreciate the comment. Yes you are probably right regarding the transfer being done from overseas and that's what triggered it. So at the beginning of the travels I did notify them but to be honest I've been slacking recently and didn't put the next countries I'll be travelling to. Only after I received that text message I updated the countries I'll be travelling to.

  • Outrageous on 01/06/2024 - 02:19

    Get someone to Western Union you some money.

  • SBOB on 01/06/2024 - 07:39
    +6

    ubank Blocked My Account for No Reason

    It clearly wasn't no reason. Accessing the account for overseas, from a country you didn't notify them you would be in, and transfering almost $10k

    Sounds like a pretty low bar for fraud detection triggers there.

  • try2bhelpful on 01/06/2024 - 08:11
    +2

    Annoying but you would be here complaining about how slack UBank is about fraud if they didn’t stop a dodgy transfer. Unfortunately they are a bit damned if they do and damned if they don’t.

    Was the account you were trying to transfer to registered against your UBank account before you left?

    Sounds like we all need to keep in mind.
    - if travelling have multiple accounts and cards to provide backup
    - keep your bank across where you are going

    I’m travelling later in the year and you are giving me things to think about.

    Hope you get this sorted including the interest rate issue.

    Thanks for the post.

  • core101 on 01/06/2024 - 09:54

    Can't send funds or even receive funds.

    uBank may have flagged you as a criminal.
    According to AFCA complaint, uBank have stated they use the Austrac guidance, which according to the preamble, is essentially is a guide to recognizing customers as criminals.

    Your actions may have elevated your risk profile, which has triggered an automatic action - blocking your account from receiving funds.

  • Master Bates on 01/06/2024 - 09:54
    +1

    $9,404.82

    It's an odd sum of money to want to transfer all of a sudden whilst overseas. How does the Bank know you're not under duress?

    • freefall101 on 01/06/2024 - 13:27
      +2

      Just under the $10k limit that triggers additional reviews, random number that doesn't make any sense, carried out from a foreign location, the exact same transaction amount is attempted again the next day… it's the biggest red flag of a transaction possible.

      • fantombloo on 01/06/2024 - 13:37

        Not really. I did a similar (9k-ish, ubank too) just the other day from a European airport to pay out a CC balance.

      • plmko on 01/06/2024 - 15:30

        No such thing as the $10k limit. All amounts are reviewed.

        • freefall101 on 01/06/2024 - 16:05

          Ah yeah, I was thinking of the cash limit.

  • foxmulder on 01/06/2024 - 10:10

    Blocked for no reason :) I'm sure they tried doing the sms code thing when you did that transfer, did you manage that

  • Ocker on 01/06/2024 - 11:14

    Rule #1 when traveling - don't take just one card.
    That aside, in the current environment one cannot blame banks for being super cautious in the monitoring of transactions over accounts

  • techno2000 on 01/06/2024 - 11:47
    -2

    Have multiple bank debit cards with you.
    There are many fee free debit cards which are good for foreign travel as they do not charge for foreegn currency tarnsactions.

    Maquarie,Ubank,UP,Spend ME, Suncorp,HSBC are among the best debit cards.

    I have been sort of debanked by CBA recently which is why I am reasearching in to the various Debit cards available.
    CBA rejected me for a new credit card after I cancelled a CBA credit card which I had held for 15 years.
    I even have a home loan with CBA and have 50 times the credit limit of the applied card sitting in my offset.
    And I have a steady income and not a retired person who keep having these issues of not being given a credit card.

    So I dont need the money on credit but need a credit card as people keep saying debit cards are an issue for use in overseas hotels and car rentals etc and maybe even in Australia as well??.

    It seems to me if a cashless economy is the future,then credit cards and debit cards should be treated exactly the same except debit is using our own money.

    Maybe Goverment legislation is required to force businesss to treat credit cards and debit cards the exact same.

    • askbargain on 01/06/2024 - 11:49

      force businesss to treat credit cards and debit cards the exact same.

      how have they treated debit card users unfairly? all you've claimed are things you have heard.

      • techno2000 on 01/06/2024 - 11:59

        I have always used a credit card before for Hotels and Car rentals.
        However there many posts on whirlpool saying they had difficulties using debit cards for these purposes especially overseas.
        Maybe ozbargainers can chip in as well.

        And there is also a claim that using credit cards is safer.

        I understand the bit about the banks money being scammed versus our own but the claim is that credit cards are safer in other ways as well.

  • noob999 on 01/06/2024 - 20:47

    Maybe next time when going OS you notify your Banks what countries you will be visiting so they don't see OS transaction as fraud attempt.

  • drspy00 on 30/11/2024 - 14:31

    This has happened multiple times with ubank, and usually over very minor things. Did everything right with travel and it happened multiple times on the trip, multiple times at home. Tried to buy with the amazon deal last week and it blocked the card, been on the phone to ubank for over an hour. I understand they have these rules that triggers things for security and thats great but every other bank I'm with it comes up with a txt message verifcation or app verifcation, sometimes even a notificaton to make sure it was me, and thats really great. I wouldnt mind so much if this happened more seldomly, and if it was not so difficult to get through. They don't even notify your card is blocked, and you keep using it which triggers even more alerts.

    Took over an hour on the phone, and that would not be possible overseas or if busy so definitely can only reccommend ubank for the good interest rate at this point. Not for everyday banking or travel.

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