Chase Bank is warning customers about an alarming trend of fraudulent activity following viral videos on social media, particularly TikTok, showcasing an alleged "ATM glitch" that users believed allowed them to withdraw free cash. However, the bank has since clarified that this "glitch" was not an error in their system but rather a form of check fraud.
The supposed glitch, which went viral during the Labor Day weekend, instructed users to deposit fraudulent checks and withdraw funds before the checks had cleared. Videos showed people celebrating with stacks of cash, claiming they had found a loophole in Chase’s ATM system. However, these withdrawals were based on the bank's policy that allows access to part of a deposited check's value before the funds are officially verified. Once the check bounced, these customers were left with massive negative balances, often in the tens of thousands of dollars.
Finding out the Chase ATM glitch was literally check kiting is a pretty good example of where the US education system stands currently. pic.twitter.com/nqXeSkHxTl
— dr. retard (@DoctorRetardPhD) September 2, 2024
Chase Bank responded quickly, stating that the glitch was not an internal error but blatant fraud. The bank emphasized that this practice is illegal, and anyone participating would face serious consequences. "Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple," said a Chase spokesperson.
The viral trend drew attention on social media, with numerous accounts showing people supposedly cashing in on the glitch. In reality, they were committing check fraud, a crime punishable by law. Chase has partnered with law enforcement to track down those responsible and is urging users not to attempt similar schemes, as it will be treated as criminal activity.
Chase Bank ATM Glitch
This is Wild
This is 4 generations of prison time pic.twitter.com/MVEKDniol7
— Cash (@cash_exp) September 1, 2024
Financial experts have also weighed in, warning people against participating in these trends. Jim Wang, a financial advisor, noted that banks are quick to catch these fraudulent activities, and participants often find their accounts frozen and heavily overdrawn. He stressed that while social media might portray these stunts as harmless, they can lead to devastating financial and legal repercussions.
Chase has already begun taking action against those who exploited the scam, freezing accounts and working with law enforcement to identify offenders. The bank has not disclosed the total number of people involved but made it clear that they would pursue charges against anyone caught exploiting the system.
The situation has drawn widespread attention due to the viral nature of the videos, but Chase’s swift response has sent a clear message: this is not a victimless crime. The bank has successfully addressed the fraudulent activities, but the repercussions for those involved may just be beginning.
As these incidents continue to circulate on social media, experts and financial institutions alike urge individuals to remain cautious about online financial "hacks" and trends. What might seem like easy money can quickly turn into a financial nightmare with long-term consequences.
