I can see why they blocked your account if they think you were a victim of identity theft, but it's still a pain to go through.
My husband had his credit card information stolen at a restaurant and the ring of thieves used the information to charge something in California, over 1000 miles away from here. The credit card company called him to see if he had made that purchase and when he said that he didn't, they didn't charge him for it. He went to the local police here and they uncovered that there was an identity theft ring and figured out at which restaurant his credit card number was stolen, since he wasn't the only victim.