I log my hours "outside the system" because I have a better system (timewarrior) and I don't want to install a spyware on my computer. I don't fraud my clients and never had an issue in getting paid.

It's not outside the system but just manually reported and you have till Monday 12:00 GMT to log past week work. What worries me is the lack of due time from Upwork and the bank. Fraud happens and is the cost of doing business and I wouldn't care about losing a week of work but two years is just surreal.