Handshake and CodeSignal records remain on your account indefinitely, but they stop affecting new transactions after a set period

Handshake onboarding is the identity verification process your bank runs when you open an account—it checks your Social Security number, address, and other details against databases to confirm you are who you say you are. CodeSignal is a fraud-detection tool that some banks use to monitor your account for suspicious activity. Both create records that stay in your account file permanently, but their active role in blocking or flagging transactions changes over time.

Handshake records typically stop triggering new verification holds or delays after 30 to 90 days, depending on your bank. CodeSignal flags may remain active for the life of the account, though older transactions carry less weight in the algorithm. The key difference: the record stays, but the system's response to it weakens as your account ages and builds a normal transaction history.

Key Takeaways

  • Handshake onboarding records stay permanently in your account file but stop causing verification delays after 30 to 90 days in most cases.
  • CodeSignal fraud detection remains active on your account indefinitely, but it learns from your normal spending patterns and becomes less likely to flag routine transactions.
  • If you are flagged during onboarding, your bank may freeze transfers or require additional documents; this usually resolves within one to five business days.
  • Closing and reopening an account does not erase Handshake or CodeSignal records—your bank can see your full history with that institution.

What happens during Handshake onboarding and how long it takes

When you open a bank account, the bank runs Handshake to verify your identity. The system checks your name, date of birth, Social Security number, and address against credit bureaus, government records, and the bank's own database. If everything matches, you get approved immediately. If there is a mismatch or the system cannot confirm your identity, the bank may place a temporary hold on your account or ask you to submit additional documents like a driver's license or utility bill.

This verification process usually completes within 24 to 48 hours. However, if the bank needs you to provide documents, the clock resets—they may give you 10 to 30 days to submit proof of identity or address. During this time, your account may be restricted: you might not be able to withdraw funds, transfer money, or use your debit card. Once the bank reviews your documents and confirms your identity, the hold lifts and your account operates normally.

The Handshake record itself never disappears from your account file. Your bank keeps it as part of your account history for compliance and fraud-prevention purposes. But after 30 to 90 days of normal account activity, the system stops using that initial verification as a reason to flag or delay your transactions.

CodeSignal fraud detection and how it monitors your account

CodeSignal is a real-time fraud-detection system that watches for transactions that do not match your normal behavior. If you usually spend $50 a day but suddenly try to wire $5,000 to an unfamiliar account, CodeSignal may flag the transaction and ask you to confirm it is legitimate. The system learns your patterns—where you shop, how much you spend, what times you typically make purchases—and uses that baseline to spot outliers.

CodeSignal records stay active on your account for as long as you hold it. Unlike Handshake, which is a one-time verification, CodeSignal is an ongoing monitoring tool. However, the system becomes smarter over time. After a few months of normal activity, CodeSignal has a clear picture of what your account looks like, so it flags fewer legitimate transactions. If you make a large purchase that is unusual but legitimate, you confirm it once, and CodeSignal learns that this type of transaction is normal for you.

If CodeSignal blocks a transaction, you typically have 24 to 48 hours to confirm it with your bank before the transaction is declined. Some banks let you confirm via their mobile app, phone call, or online banking portal. Once confirmed, the transaction goes through and CodeSignal adjusts its model of your behavior.

What happens if you are flagged during onboarding

If Handshake cannot verify your identity immediately, your bank will contact you—usually by email or phone—and ask for additional documents. Common reasons for a flag include a name mismatch (if you recently married or changed your name), an address that does not match your credit file, or a Social Security number that does not appear in the verification databases (which can happen if you are new to the country or have a thin credit history).

The bank will specify which documents they need. Typical requests include a government-issued ID (driver's license, passport, or state ID), a recent utility bill or lease showing your current address, or a letter from an employer confirming your name and address. You usually have 10 to 30 days to submit these documents, though some banks extend this deadline if you ask.

Once you submit documents, the bank's compliance team reviews them, typically within 3 to 5 business days. If the documents match your account information, the hold is lifted and your account is fully activated. If there is still a discrepancy, the bank may ask for more information or, in rare cases, close your account and return your funds.

How closing and reopening an account affects your records

Closing your account does not erase your Handshake or CodeSignal records. Your bank maintains a complete history of every account you have opened with them, including all verification records, fraud flags, and transaction patterns. If you close an account and open a new one at the same bank, the new account will be linked to your previous account history.

This means if you were flagged during onboarding on your first account, opening a second account at the same bank will not reset that record. However, your improved transaction history on the closed account may actually help the new account. If your first account had normal activity for six months before you closed it, the bank knows you are a legitimate customer, and the new account may skip or expedite the Handshake verification process.

If you open an account at a different bank, that new bank runs its own Handshake verification and has no access to your history with your previous bank. However, if you were flagged for fraud or identity theft, that information may appear on your ChexSystems report, which many banks check during onboarding. In that case, the new bank may also flag your account.

How to avoid delays and flags during onboarding

The best way to avoid Handshake delays is to provide accurate information when you open your account. Use the exact name that appears on your government ID, your current address, and your correct Social Security number. If your name or address has changed recently, update your information with the credit bureaus before opening the account, or be ready to submit documents proving the change.

When you open the account online, double-check every field before submitting. A typo in your address or a middle initial you usually omit can trigger a mismatch that requires additional verification. If you are opening the account in person at a branch, bring your ID and a recent utility bill or lease—this speeds up verification and reduces the chance of a flag.

To minimize CodeSignal flags after your account is open, use your account normally for the first few weeks. Make small purchases, a few transfers, and routine transactions so the system can build an accurate profile of your behavior. Avoid large, unusual transactions in the first 30 days if possible. If you do need to make a large transfer or purchase early on, call your bank beforehand and let them know it is coming—some banks can whitelist the transaction so CodeSignal does not flag it.

What to do if your account is frozen or restricted

If your account is frozen due to a Handshake flag or CodeSignal alert, contact your bank immediately. Call the number on the back of your debit card or log into your online banking portal to find the fraud department's direct line. Explain the situation and ask what documents or information they need to lift the hold.

If it is a Handshake issue, be ready to submit your ID and proof of address. If it is a CodeSignal flag, be ready to confirm the transaction. Most banks can resolve a CodeSignal flag in minutes once you confirm the transaction is legitimate. Handshake issues typically take 1 to 5 business days to resolve after you submit documents.

If your bank is unresponsive or the hold lasts longer than a week, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB can pressure the bank to resolve the issue and may order them to compensate you for damages if the hold was unreasonable.

Frequently Asked Questions

Can I remove Handshake or CodeSignal records from my account?

No. These records are part of your permanent account file and are required by banking regulations. However, after 30 to 90 days of normal activity, Handshake stops triggering new holds, and CodeSignal learns your behavior and flags you less often. You cannot delete the records, but their impact on your account decreases over time.

Will a Handshake flag show up on my credit report?

No. Handshake verification is an internal bank process and does not appear on your credit report. However, if the bank closes your account due to failed verification, that closure may appear on your ChexSystems report, which other banks can see when you apply for a new account.

What if CodeSignal keeps flagging my legitimate transactions?

Call your bank and ask them to adjust your CodeSignal settings or add certain merchants to your whitelist. Some banks let you set spending limits or pre-approve certain types of transactions. If the flags continue after a few months of normal activity, ask to speak with the fraud department about recalibrating the system for your account.

Does opening a joint account reset my Handshake record?

No. A joint account is a new account, so the bank runs Handshake on both account holders. However, if you were flagged on a previous individual account, that history may affect the new joint account's verification process, especially if the other account holder has a clean history.

How long does CodeSignal keep data about my transactions?

CodeSignal typically retains transaction data for 12 to 24 months to build your behavioral profile. Older transactions have less weight in the fraud-detection algorithm, so a large purchase you made a year ago will not trigger a flag if you make a similar purchase today. The system prioritizes recent behavior.