Can a Bank Freeze Your Account for Gambling?
Recently updated on January 9th, 2023
No, banks are under no obligation to freeze your account for gambling. Since gambling is not an illegal activity, banks cannot stop you from using your funds to gamble. According to the U.S federal banking laws, banks can only freeze your account when you are under criminal investigation or if a court of law so orders them.
Banks also have an obligation to protect customers, hence they will also freeze your account if there is a suspicion on your bank account. Gambling is neither a suspicious activity nor a criminal offence. Although banks must protect you, you still need to also take part in protecting yourself and your funds on online gambling sites. Below we look at how you can protect yourself at online gambling sites.
How to Protect Yourself at Online Gambling Sites
Although a bank cannot freeze your account for gambling, you have to be accountable and protect yourself. Below are our tips on how to protect yourself at online gambling sites:
Only Play at Licensed and Legitimate Casinos
Casino reviews are an essential source of information regarding casinos. Always go through the casino’s review before signing.
This will protect you from sharing your personal information, including your banking details, with casinos that will put your data at risk of being accessed by third parties.
Avoiding Signing into Your Casino Using Multiple Devices
You should avoid using other people’s devices to login into your casino account. You should also avoid using work devices to log into a casino.
Casinos and banks might not be able to protect you if another person accesses your account.
Never Open Suspicious Documents
Avoid opening spammy emails since they might carry viruses that could make your data vulnerable. Delete any suspicious emails, and don’t click through unknown links or open a document that you are not sure of its source.
Only Use Trusted Payment Options
The radical shift to digital technology means that more and more things are now done online, including financial transactions. Although there are third-party banking options such as E-wallet, you need only to use trusted banking options.
Never Share Your Casino Details
If you share your details, the casino will not be able to protect you if the person you have shared your details with misuses your account.
Reasons A Bank Can Freeze Your Account
As stated, a bank cannot freeze your account for gambling. However, there are certain circumstances in which a bank will have to freeze your account. Here are the reasons a bank may freeze your account:
- Suspicious or Illegal Activities
A bank will freeze your account if they suspect you are conducting illegal activities. If a large sum of money is deposited into your account, for example, if you win big at a casino, your account might be frozen. You thus have to declare big fund transfers to your bank.
- Unpaid Debts
Your creditors can also get the bank to freeze your account if you fail to pay them. This can usually be done through a court order. The IRS can also issue a levy for unpaid taxes, obliging your bank to freeze your account.
Banks are mandated to protect their customers from crimes such as identity theft; hence there are several instances where they might freeze your account. As you have also noted, failing to fulfil your debt or tax obligations might also lead to banks freezing. However, under no circumstances will a bank freeze your account for gambling.