Fidelity’s Technical Snag Causes Frustration Among Customers, Results in Unexpected Deposit Holds

Fidelity Customers Frustrated with Week-Long Deposit Holds

Fidelity customers who use a certain type of account have discovered cumbersome deposit restrictions in recent days. In some cases, folks say they are encountering weeks-long holds for deposits to clear.

Why the Hold-Up?

Here’s what’s happening: The financial services company has recently seen a surge in fraudulent activity, which meant it had to take “immediate steps to address the issue,” a spokesperson said in an email. While Fidelity isn’t confirming what exactly those actions entail, affected Reddit users are reporting frustrating personal experiences with the new fraud prevention measures, which they say are overly aggressive.

The “Fidelityboyz” Scam

The fraud scheme in question went semi-viral earlier this month, sometimes under the hashtag “#fidelityboyz.” In one post that has over 4,500 likes on Instagram, several men wearing Fidelity T-shirts are seen throwing large amounts of cash in the air.

Fidelity’s Response

Fidelity’s stance is that it is focused on preventing fraud. “We recently identified individuals attempting to commit fraud using their Fidelity accounts. We have no tolerance for any type of illegal activity,” a spokesperson said. “To be clear, these individuals were committing fraud with respect to their own accounts: No other customer information, accounts or assets were at risk.”

Affected Account Type

The type of account that’s been affected is called a cash management account, abbreviated CMA. These are interest-bearing accounts that have functionalities for paying bills as well as cashing and writing checks. On its website, Fidelity calls them an “alternative to traditional banking.”

Customer Frustrations

But customers are now reporting in forums that when they’ve tried to make legitimate transfers and check deposits, they’ve been slapped with holds and haven’t been able to access money they need. On Friday, the Wall Street Journal reported that Fidelity deposit limits had been reduced from $100,000 to $1,000 in some cases, adding that the fraud concerns were specifically related to mobile-app check deposits.
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