Bank Account of Business Customer Frozen by Bank of America, Funds of $212,853 withheld until specific event: Allegations
In the midst of the COVID-19 pandemic, Sarah Torres, a California-based entrepreneur, received Employee Retention Credit (ERC) checks, a benefit her business was entitled to for retaining employees. However, a discrepancy in tax identification numbers led Bank of America to suspect fraudulent checks, and they froze her account, withholding $212,853 she received from the US government.
This incident highlights Bank of America's fund-holding practices in suspected fraud cases. The bank, like many others, employs such measures to safeguard consumers and comply with state and federal laws regarding suspected fraud. These practices are consistent with regulatory state hold laws and guidance from the American Bankers Association (ABA) [1][5].
In the case of Sarah Torres, no publicly available information indicates any changes in Bank of America’s policy stemming from her situation. Despite Torres's claims of never receiving responses from Bank of America despite sending emails and mailing documents, Bank of America has since released her funds. Their subsequent investigation, it seems, revealed no fraud [2].
The discrepancy in Torres's case was due to a change in the tax employer identification number (EIN) of her business last year, but the Internal Revenue Service (IRS) failed to make the update [3]. This oversight led to the initial suspicion of fraud by Bank of America.
As the business world continues to evolve, banks, including Bank of America, are developing fraud mitigation strategies to balance prevention with customer protection. However, specific case details in this context are not always documented publicly [4].
Meanwhile, the crypto world is buzzing with news. Bitcoin is on the cusp of entering the euphoria phase, according to an on-chain analyst. SwaggyX.com has launched the first AI-powered Web 3.0 prediction platform for crypto, sports, and global events. Remittix has passed $18.7 million in its presale and announced the launch date of its Beta Web3 wallet. FLOKI's Valhalla MMORPG storms US television with a 60-day national commercial blitz [6][7][8].
In other news, dYdX Foundation has raised $8 million to accelerate ecosystem growth. NODO and Momentum partner to deploy AI-driven vault strategies on the Sui Network. Vantum Wallet Beta reports strong daily transaction activity. JPMorgan Chase employee accidentally unfreezes a scammer's stolen money, causing a $20,000 loss for an Arizona couple [9][10][11].
E-commerce is also seeing innovation through blockchain, with ECM Coin Founder Tanvirul Islam Prince building the future of e-commerce. Lastly, Brian Armstrong, CEO of Coinbase, addressed the UK ban of Coinbase commercial, stating it as a statement on the financial system not working for many [12].
References: 1. ABA Guidance on Suspicious Activity Reports 2. Bank of America Releases Frozen Funds for California Entrepreneur Sarah Torres 3. IRS Fails to Update Tax ID for California Entrepreneur, Leading to Frozen Funds 4. Fraud Prevention and Customer Protection: A Balancing Act for Banks 5. ABA Statement on State Hold Laws 6. SwaggyX.com Launches AI-Powered Web 3.0 Prediction Platform 7. FLOKI's Valhalla MMORPG Storms US Television with 60-Day National Commercial Blitz 8. Remittix Presale Passes $18.7 Million, Announces Beta Web3 Wallet Launch Date 9. JPMorgan Chase Employee Accidentally Unfreezes Scammer's Stolen Money 10. NODO and Momentum Partner to Deploy AI-Driven Vault Strategies on Sui Network 11. Vantum Wallet Beta Reports Strong Daily Transaction Activity 12. Brian Armstrong Addresses UK Ban of Coinbase Commercial
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