In the evolving landscape of online financial fraud, a particularly deceptive tactic has emerged: the Partnered Bank Withdrawal Scam. Disguised behind a veil of credibility, this scheme involves fraudulent brokers claiming they can only process withdrawals through their so-called “partnered bank”. While this may sound like a standard operational procedure, it’s often used to block withdrawals, extort fees, or gain access to sensitive personal and financial information.

This article explores how the scam operates, the warning signs to look for, and how to protect yourself from becoming a victim.

What Is the Partnered Bank Withdrawal Scam?

This scam occurs when a broker refuses to process a withdrawal unless the trader agrees to transfer their funds through a specific “partnered” or “authorised” bank. The trader is told that, due to regulatory compliance, security protocols, or anti-money laundering rules, all withdrawals must go through this designated channel.

In reality, the so-called partnered bank either does not exist, is simply a front controlled by the scammer, or is a method to extort additional money from the trader before releasing their funds.

How the Scam Typically Works

Initial Deposit and Trading Phase

The trader is onboarded and encouraged to deposit funds into their trading account. The platform behaves normally at first, with the appearance of trade execution and profit generation. This creates trust and a false sense of legitimacy.

First Withdrawal Attempt

Once the trader decides to withdraw profits or reclaim their deposit, they are told the request cannot be processed through regular payment channels. Instead, the broker insists that all withdrawals must be routed through their “partnered bank” due to internal policy or international financial regulation.

Fake Processing or Clearance Fees

To move the funds through the partnered bank, the trader is asked to pay an upfront processing fee, clearance charge, or transaction validation cost. These fees are usually significant—ranging from 5% to 20% of the withdrawal amount.

Delays and Escalating Charges

Even after the fee is paid, the withdrawal is delayed further. The broker or bank representative claims more documents are needed, or that additional charges have surfaced. Each step is designed to prolong the process and extract more money from the trader.

Cut-Off or Disappearance

Eventually, communication is cut off, the platform becomes inaccessible, or the trader is told their account is under investigation. The funds are never released.

Key Red Flags to Watch For

Withdrawal Restricted to One Bank

No legitimate broker restricts withdrawals to a single third-party bank. Regulated brokers offer multiple withdrawal methods—cards, e-wallets, bank transfers—and do not force users to deal with specific financial institutions.

Upfront Withdrawal Fees

Legitimate brokers deduct fees from the withdrawal amount or disclose them transparently in their fee schedules. Requiring a separate payment before a withdrawal is processed is a clear sign of fraud.

Unverified or Unknown Bank Entity

If the “partnered bank” cannot be found through a basic online search, is not licensed in your jurisdiction, or has no traceable business address, it’s likely fake or complicit.

Pressure to Act Quickly

Scammers often apply urgency by saying the window to withdraw through the bank will close soon, or that you risk account suspension without immediate payment. This is a manipulation tactic.

No Independent Contact for the Bank

The only way to communicate with the so-called bank is through the broker or via suspicious email addresses. Real banks have public contact information and official channels.

How to Protect Yourself

Use Only Regulated Brokers

Work with brokers licensed by reputable authorities. They are bound by laws that protect investor funds and ensure transparent, fair withdrawal policies.

Never Pay to Access Your Money

Refuse any request for upfront fees to release your own funds. This practice is illegal in most regulated jurisdictions.

Demand Written Documentation

If a broker insists on a partnered bank process, ask for official documentation and legal references. Scam brokers will avoid providing verifiable paperwork.

Contact Your Bank and Authorities

If you’ve been asked to pay suspicious fees or have already done so, contact your bank immediately. You should also report the incident to your local financial regulator or anti-fraud agency.

Check Online Complaints

Before making a withdrawal, research the broker’s name along with keywords like “withdrawal problem,” “partnered bank,” or “scam.” If others have experienced the same, it’s a strong warning sign.

Conclusion

The Partnered Bank Withdrawal Scam is a sophisticated method of trapping trader funds under the illusion of banking legitimacy. It plays on the user’s fear of regulatory violations and their hope of eventually recovering their money. By learning to recognise the signs and sticking to regulated, transparent brokers, you can avoid this type of financial manipulation.

For traders who want to deepen their understanding of scam detection and protect their funds, enrol in expert-led Trading Courses that teach practical risk management and real-world broker verification skills.