Chase Bank is warning customers that a viral trend on social media, which claims to exploit a “glitch” in the bank’s ATM system, is actually a criminal act of check fraud. The scheme, promoted through videos on TikTok and X (formerly Twitter), encourages people to deposit fake checks and quickly withdraw money before the checks bounce.
This fraudulent practice, known as “check-kiting,” involves writing bad checks between accounts to artificially inflate balances. Committing check fraud carries serious legal ramifications, including jail time and hefty fines, even for first-time offenders.
NBC reports that in an official statement, Chase Bank confirmed its awareness of the trend and stated that the issue has been addressed. JPMorgan, the bank’s parent company, is carefully reviewing the situation, although the number of customers involved and the amount of money at stake remain unclear.
Luis Corrons, a cybersecurity expert, warns that financial institutions are vigilant in detecting fraudulent activities and that those caught committing fraud risk having their accounts frozen or permanently closed. “If it looks too good to be true, it probably is,” Corrons cautions via Yahoo.
The popularity of financial advice on social media platforms, particularly among young adults, has contributed to the normalization of “hack” videos promoting fraudulent activities. Corrons emphasizes the importance of skepticism and staying informed when encountering such content.
For individuals who may have attempted the “glitch,” financial educator Jim Wang advises not spending or moving the money and informing the bank immediately, as reported by CNN. “Don’t spend the money, don’t move it, just leave it alone and tell the bank,” Wang urges.
As Chase Bank continues its investigation and works to prevent similar incidents in the future, the potential involvement of regulators remains uncertain. This incident serves as a reminder to seek financial advice from credible sources and exercise caution when encountering seemingly too-good-to-be-true schemes on social media.
