The unverified deposit origin blocks entire account scam is a tactic used by brokers to freeze a trader’s entire account, including all active positions and withdrawals, on the grounds that a deposit’s origin could not be verified. This often occurs after the trader has already deposited funds, completed the KYC process, and perhaps made profits. The broker then claims that the funds were received from an unverified or third-party source, using this as justification to block access to the trader’s account, suspend withdrawals, and even nullify trade activity.

This is not a standard compliance procedure—it’s a calculated move to trap your funds under false pretences.

How the Scam Works

1. Trader Makes a Deposit and Begins Trading
A trader funds their account using a standard payment method, such as:

• Credit/debit card
• Bank transfer
• E-wallet (Skrill, Neteller, PayPal)

The trader may have already passed the full KYC process, including submitting identity documents and proof of address. Trading begins, and the account is active.

2. Broker Accepts Deposit but Later Flags It
After a period of activity—especially if the trader begins to show profits or request a withdrawal—the broker suddenly raises a red flag:

“We are unable to verify the origin of your deposit.”
“Your account is under review due to a potential third-party funding issue.”
“We suspect the funds did not originate from an account in your name.”

Despite accepting the deposit earlier with no objections, the broker now uses the deposit origin as an excuse to freeze the account.

3. Account Is Frozen and All Activity Blocked
The trader is immediately locked out of their account functions:

• No withdrawals are allowed
• Open trades are suspended, frozen, or forcibly closed
• Trading access is disabled
• Customer support refers all queries to an opaque “compliance team”

The trader is told that until the deposit origin is verified to the broker’s satisfaction, the account will remain blocked.

4. Broker Refuses to Accept Standard Proof
Even if the trader provides:

• Bank statements
• Card screenshots
• Proof of payment from the original funding source

…the broker either refuses to acknowledge it, asks for more unrelated documents, or cites internal policies to delay resolution indefinitely. In many cases, the trader receives no follow-up.

5. Funds Are Withheld or Seized
Eventually, the broker may claim:

“Due to a breach of our funding policies, your account has been suspended indefinitely and all funds are frozen.”
“We are unable to return the deposit as the source is unverified.”
“Your account has been closed due to AML violations.”

The trader loses access to all capital, including the original deposit and profits.

Why This Scam Is So Dangerous

The unverified deposit origin blocks entire account scam is particularly harmful because:

• It weaponises anti-money laundering policies to withhold funds unfairly
• It gives the broker complete control, enabling them to hold trader funds hostage without legal basis
• It targets successful traders, often only after they start making profits or request a withdrawal
• It undermines regulatory principles, turning protective policies into tools for abuse
• It traps both the deposit and the gains, causing severe financial damage to the trader

This scam is designed to appear regulatory in nature, but in reality, it’s a tactic to delay or deny withdrawals and confiscate funds.

How to Detect the Scam

1. No Issues Until a Withdrawal Request
If your deposit is accepted and there are no issues raised until you try to withdraw, it’s a major red flag. Genuine compliance issues are usually addressed immediately after deposit, not weeks later.

2. Sudden Freezing of Account Despite Passed KYC
If your account is frozen despite being fully verified during onboarding, and the broker refuses to clarify what the issue is or what’s needed to resolve it, this points to intentional obstruction.

3. Vague or Moving Compliance Requirements
Scammers often:

• Refuse to specify what proof is required
• Ask for more documents after each submission
• Invent new requirements, such as notarised letters or certified bank affidavits

4. No Third-Party Deposit Warning in Terms
Check the broker’s terms and conditions. If there was no mention of prohibiting third-party funding, and your deposit was accepted anyway, this excuse is likely fabricated after the fact.

How to Protect Yourself

1. Use Regulated Brokers with Clear Funding Policies
Only trade with brokers regulated by reputable authorities like the FCA, ASIC, or CySEC. These brokers:

• Have clearly defined funding and withdrawal policies
• Are bound to process withdrawals unless there’s real evidence of fraud
• Are answerable to independent complaints bodies

2. Avoid Third-Party Deposits
Even if the broker seems legitimate, always deposit from an account in your name. This minimises the risk of the broker using the funding origin as an excuse to freeze your account.

3. Request Confirmation of Deposit Validity Immediately
After depositing, ask the broker:

• “Can you confirm this funding method is acceptable under your AML policy?”
• “Are there any documents you need to confirm the source?”

Get written confirmation by email or in-platform support so the broker cannot later claim a violation.

4. Keep All Transaction Records
Maintain:

• Payment confirmations
• Screenshots of transaction IDs
• Email receipts
• Statements showing your name and the deposit

If your account is frozen, this evidence can help dispute the broker’s claims or file a regulatory complaint.

5. Withdraw Profits Regularly
Never allow your trading account balance to grow too large without partial withdrawals. This reduces the financial impact if your account is later blocked under false pretences.

Regulatory Expectations

Under MiFID II, FCA, ASIC, and CySEC rules:

• Brokers must verify deposit origins at the time of funding, not retroactively
• Accounts cannot be frozen without due process, and traders must be given a reasonable opportunity to provide documents
• Compliance checks must be proportionate, timely, and transparent
• Withdrawals must be processed unless there is a legitimate, documented legal reason not to
• Excessive or abusive use of AML policies is a violation of client protection rules and can lead to fines or suspension of licence

If your broker is using this excuse in bad faith, you can file a complaint with their regulatory body.

Conclusion: If Your Account Is Blocked Over Deposit Origin, Act Fast

The unverified deposit origin blocks entire account scam is a manipulative tactic that exploits compliance procedures to trap trader funds. It is often triggered after profits or withdrawal requests, and the broker may refuse to resolve the issue regardless of what evidence you provide.

To protect yourself, always use regulated brokers, ensure your deposit source is clearly in your name, and keep all records. If your account is blocked without fair cause, escalate immediately to the regulator.

For more guidance on avoiding manipulative broker tactics, enrol in our Trading Courses. We’ll teach you how to protect your capital and navigate broker red flags like a pro.