This is outlandish! Two things are "key" here: "Suspect" one's money was obtained by illegal activity (no proof), and "permanently". Think of all the side-effects: Guy's checking account is suddenly emptied, all the checks he has written are going to "bounce", accumulating large fees. Assuming he is not arrested, he takes money to his bank, deposits it, to pay for costs possibly not his fault at all. The Gestapo of the 1940s looks tamer all the time! "Oklahoma Cops Find A New Way To Take People's Money, Even If They Don't Have Cash" Oklahoma police agencies are being equipped with devices that allow officers to scan prepaid debit cards and target funds linked to them for civil asset forfeiture, which allows law enforcers to permanently seize property they suspect is connected to criminal activity. The Oklahoma Department of Public Safety has purchased Electronic Recovery and Access to Data machines for installation in Oklahoma Highway Patrol and Oklahoma City police cruisers, according to an Oklahoma Watch report published Tuesday. The device tells officers the balance of prepaid debit cards and gift cards, and allows them to seize the money if they determine it's suspicious. http://www.huffingtonpost.com/entry/oklahoma-police-erad_us_57584060e4b0e39a28ac2083
I can see that if they stop somebody and find a whole suitcase of prepaid credit cards, seizure might be justified. But, as the article says, it could be easily abused. Guilty until proven innocent.