No. It is a long standing practice. But it is the Gov trying to steal your money.
Well, sounds like something that needs reform. If even automatic transactions are going between it and another account that DOES have “people” transactions going on, then it shouldn’t escheat.
However, just adding something manually to the account about which escheatment is pending ought to stop that. This is why the bank warns.
Stealing is what governments do. After all, most levels of government cannot simply create money out of thin air before they pies it off on (for the most part) progressive spending.
I’m not sure what state you’re in, but in my situation here in Colorado, it was very easy to get the asset back. It was just a pain in the butt to have to do it. However, the magic of the whole thing is that it suddenly became laundered money - at least in my case. The tax obligations to both the Fed and state just vanished with their attempted confiscation.