A 26-year-old Australian woman, Zoe Graham, has reported being locked out of her bank account and all her funds without prior warning. Up Bank, a digital banking brand owned by Bendigo Bank, placed a hold on her account as it investigates a transaction dispute.
Graham sold a rare book online approximately four months ago for $90. The customer subsequently claimed they never received the item, leading to accusations that Graham was a scammer. Despite providing the bank with the customer's information and tracking details, she remains unable to access her money.
Up Bank informed Graham that restrictions on her account mean she cannot make purchases or send payments, and incoming payments will also be affected. The bank stated that such reviews typically take up to four weeks to complete. Graham expressed concern about the legality of the situation and the potential delay in resolving the dispute, noting that she had been blocked by the customer.
In messages to Graham, the bank explained that restrictions were placed on her account due to an investigation prompted by alerts flagged by other financial institutions. Up Bank advised Graham that it could not provide direct financial assistance during the review period and suggested she contact external support services such as Centrelink and AskIzzy, a service that helps locate financial aid and other necessities.
Graham stated that she does not qualify for Centrelink or AskIzzy resources, as she is a full-time charity worker with a "nice wage" but still has bills to pay. She has also been advised not to open an account with another bank while the investigation is ongoing.
Other Up Bank customers have reported similar experiences, with some citing account cancellations without notice due to transactions deemed suspicious and others facing fund freezes pending investigations that could take up to six weeks. Some users reported being directed to food banks and other charitable organizations for assistance.
Graham intends to lodge a complaint with the Australian Financial Complaints Authority regarding the incident. Bendigo and Adelaide Bank, the parent company of Up Bank, has been contacted for comment.