Amazon stealing my money

I ordered something and shortly after for some reason my account got "temporarily locked". Apparently they want to verify my identity. Additionally, the item I ordered was "lost" by the courier, even Amazon says so, it's been a week and was never delivered.

I don't want to give Amazon anything, I just want my money back and never shop there ever again.

I called support and they said they wouldn't give me my money back until I confirmed my identity.

Is this even legal? How can they keep my money if I never received any product?