Why is Kuda account restricted? Kuda, one of the leading digital banks in Nigeria, has transformed the method by which people manage their money with an incredibly simple and intuitive app. However, like with every banking system, there may be instances when for one reason or another, your Kuda account gets locked. This can be very annoying especially if you do not know the cause and the way to go about the issue. In situations like this, you are not the first — many people at certain point or another experience the restrictions.
In this guideline, we will discuss the common reasons for Kuda account restriction, such as how to solve the problem, and several other related questions to provide you with adequate information about the procedure.
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Why Kuda Account Restricted?
There are a number of reasons that could lead to a restriction of your Kuda account with the primary goal being safety and security of your Kuda account from unauthorized access or fraudulent activities. Let us examine some of the reasons for which Kuda may lock your account:
1. Suspicion of Fraudulent Activity
Among the typical reasons for a Kuda account being restricted is they suspect you might have committed or are intending to commit questionable activities. Digital banks, including Kuda, have very sophisticated systems to detect fraud that track all the activities that occur in your account. Such an account may be put under review should there be unusual activity in that account or any other activity on the account that is not consistent with the account holder’s normal activities. Here are a few cases in point:
Concerning Excess or Regular Deposits: Kuda could presume that your account is a transactional account and may be involved in some illegitimate transaction activities when you deposit large amounts over a short period or make regular smaller deposits into the account. For instance, when such a person begins to receive deposits from unknown parties or in suspicious amounts, a restriction can be placed.
Atypical Activity: Making sudden payments or moving funds around the different accounts over a given period might attract Kuda’s security team when it comes to their transaction evaluation. Most especially, when such payments are not in line with the normal transaction weighting.
Accessing from New Devices or via Geographical Locations: Kuda states that it may also limit the usage of your account if you access Kuda from a location or device that is new to you. This is because new activity from a device or a location which is not usual for the account holder may suggest that the account is being accessed by an unauthorized individual.
These behaviors are usually detected and reacted to by Kuda systems which aim to protect your account from hackers and other fraudsters.
2. Wrong or Irreconcilable Card Details
The other reason that could result in the limitation of your account is the situation where you attempt to attach a card or perform transactions using a card that does not correspond to the one you registered initially. For instance, if you want to cash out on a card that has been reported lost or is out of service such as a card flagged for inappropriate usage, Kuda could restrict your ability to use this account. This is a safety-oriented approach to tackle issues with unapproved access.
3. Use of a New Device or Windows
Kuda deploys advanced techniques in monitoring logins to your account. For instance, in case you log into your account from a different country or new electronic equipment, Kuda could freeze your account against any possible fraudulent activity. While this function is a great resource in mitigating the risk of falling prey to loss, it, unfortunately, poses a challenge to persons who travel a lot or use different devices. In such instances, Kuda’s system quite often requires you to undergo an identity verification process prior to deactivating the blockage.
4. Not Completing the Necessary Verification
Kuda might limit access to your account in certain instances where you have not completed the necessary identity verification process. This may involve the submission of relevant documents like your Bank Verification Number (BVN), National Identification Number (NIN), or other acceptable forms of ID verification. In circumstances where Kuda fails to authenticate your ID after several attempts, or you do not provide the missing information, your account may be limited until these matters have been rectified.
5. Breach of Terms & Conditions or Account Abuse
Furthermore, limits may be placed on your Kuda account due to possible breach of Kuda terms and conditions. This may include engaging in illicit activities such as money laundering, using the account for dishonest measures, or exhibiting other types of conduct which Kuda may consider to be unfit or even against the law. Kuda is not complacent about such breaches and will put restrictions on any users suspected of engaging in prohibited activities.
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6. Legal or Compliance Matters
In some specific instances, account restrictions may also be imposed for legal or compliance purposes. For instance, if there is a legal injunction, or legal proceeding involving your account, then Kuda may have to temporarily restrict the account, or its functionalities. In addition, laws may also require Kuda to place hold on some customers account until they are satisfied with the level of compliance.
How Am I Supposed to Lift the Restrictions Imposed on My Kuda Account?
In cases where Kuda account restrictions have been placed, it is possible that the following steps may help in restoring access back to the account. Normally, the procedure is simple but the timeframe will vary depending on the reason of the restriction. Do the following:
Step 1: Look Up Your Emails and Notifications
In most instances when they lock you out of your account, Kuda will send you an email notification or an in-app notification. This message will likely contain the grounds for the account ban and more often than not instructions on how to fix the problem. The email will generally include the following details:
Few lines explaining reasons for your restricted account.
Instructions on how to go about the restrictions including the documents or information to be presented.
All of sober message must be remembered and more importantly, availed in a perfect manner as requested.
Step 2: Look for Help Kuda Support
The next level is contacting directly Kuda of your message does not have enough information or you have a question. You can reach them through the app, send an email or call their support line. Do not forget to mention what kind of restriction was applied and on what account. This can be inclusive of:
Full names and registered email details.
Details about the operations and transactions that may have caused the restriction.
Any other requirements that may be needed by Kuda for identification purposes.
When giving the reasons for the problem, it is important to give every necessary detail that will help in the rapid resolution of the problem by the support team.
Step 3: Identity Verification
Kuda may possibly require you to give them more compliance perhaps with your verification, or it could be any other relevant information before they remove the limit on your account. The following might be required for the verification:
Uploading a credible document by the government like a driver’s license or a passport.
Responding to specific questions designed to verify who you are.
Submitting proof of address in case there are some irregularities regarding the activity on your account.
Kuda’s security team will assess the documents you provide and, should everything be in order, will remove the restrictions imposed on your account.
Step 4: Wait for the Lifting of the Account Restriction
Upon contacting the support team and providing requested documents, the only thing left will be the review timeline for Kuda other than the restrictions imposed. This essentially takes several hours or sometimes days based on the kind of restrictions placed. If the restrictions have been placed or removed with regard to your account Kuda’s team will communicate with you.
How to Stop Having Your Account Restricted Again in The Future
It is understandable that it may not be possible to eliminate all restrictions, but there are several measures that one can take to make it less likely that Kuda account will be restricted in the future:
Keep an eye on your transactions: look at the transaction history quite often to make sure there are no unapproved activities.
Log in using safe devices and wi-fi connections: Attempt the login only from devices and networks that are safe and secured to avoid any hacking.
Ensure you finish all processes of verification: Make sure that your Kuda account has exhausted all forms of verification including Kuda BVN and NIN to increase transaction limits.
Taking care when it comes to making large or numerous transactions: Do not engage in unusual behavior, such as making a large money deposit or wiring large amounts of money, unless absolutely necessary.
By adhering to these instructions, it will be more difficult for Kuda to restrict your account and your money will be protected.
Frequently Asked Questions (FAQs)
1. Why am I restricted from opening a Kuda account?
There can exist multiple reasons as to why you are not able to open a Kuda account some of them may include.
For you to open a Kuda account, you need to be a Nigerian citizen or a resident.
You also have to acquire a Bank Verification Number (BVN) which is a legal requirement.
You will also need a smartphone with the operational system of either iOS 12.0 and above or Android 6.0 and above in order to open a Kuda account.
To be eligible for higher transaction limits, you will have to input your National Identification Number (NIN as it is popularly known).
In the case that all of these prerequisites are met yet you cannot still open an account, it would be advisable to contact Kuda’s customer service desk for help.
2. How long does it take to unrestrict my Kuda account?
In most cases, the length of time needed to unrestrict your account is determined by the course of the restriction. For instance, if the query concerns simple problems like verification or password challenges, it can take up to a few hours to a maximum of one day. On the other hand, if the query to be resolved is that the account owner has been restricted due to some suspicious activities, it may take days for Kuda to work on the query.
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3. Is it available to use an account with a restriction?
No, it is not possible to perform any transactions, make any withdrawals, or funds transfers from the account once it is under account restriction. However, the balance and the transaction history of the account can be accessed normally by most users until a restriction is placed on that user.
4. What is the consequence of failing to lift the restriction?
When you do not lift the restriction on Kuda, you have no way of reaching your account’s funds nor completing any transactions. Hence, in such a scenario, it is crucial to take action and find a way to resolve the problem in coordination with Kuda’s support.
In conclusion, a disabled Kuda account may bring a lot of inconveniences and frustration but it is worth noting that this limitation is probably there to secure the clients and their money.Knowing the reasons that may lead to the restriction of your Kuda account and the corrective measures that address the concern, you will be able to regain access swiftly.
Always maintain contact with Kuda’s support service for any assistance, and especially make sure all your account information is current. Doing this helps in avoiding numerous inconveniences and assists in keeping your account safe as well as accessible all the time.
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