Chase bank ATM glitch: Be wary of social media ‘hacks’

( NewsNation ) — A recent wave of viral TikTok videos had some people believing they could get “free” money thanks to a “glitch” in Chase bank ATMs.

The so-called “glitch” purportedly allowed customers to deposit fake checks for large sums of money and then quickly withdraw cash from the ATM. Videos on social media showed those who allegedly took advantage of the bug celebrating with stacks of money.

Chase said the issue has “been addressed” and warned that cashing a phony check is a crime in an email to NewsNation.

“Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple,” a Chase spokesperson said.

Some social media users appear to have learned the hard way, posting videos showing negative account balances supposedly after Chase fixed the problem and clawed the money back.

J.D. Koontz, an independent banking expert, said those who participated would be lucky to only face overdraft fees.

“It’s quite likely you’re facing criminal charges for bank fraud,” he told NewsNation’s Nichole Berlie .

While less believable than other bogus social media claims, the Chase Bank “glitch” underscores the risk on platforms like TikTok and Facebook, where dubious financial advice is easy to find.

The hashtag #FinTok, which represents the financial TikTok community, has appeared on over 115,000 posts and racked up billions of views. Personal finance influencers, “finfluencers,” offer personal money tips that range from genuinely helpful to overtly misleading .

A recent study from the stock research platform WallStreetZen found that 63% of stock-related videos on TikTok are misleading.

Nevertheless, roughly a third of Americans say they got financial advice from social media in 2023, according to a Bankrate survey . Among younger Americans, the share was even higher — nearly half of Gen Zers, ages 18 to 26, turned to social media for financial advice.

Sarah Foster, an economic analyst at Bankrate, said the rise of finance influencers has been helpful for many but also comes with new dangers.

“The democratization of investing is a good thing but it just opens up another can of worms where you just really have to take the initiative to verify that the information on there is correct,” she said.

Here’s what to look out for when considering what to take seriously.

Verify influencers credentials

Anyone can post online claiming to be an expert but that doesn’t mean they are. Social media users should look for certifications and credentials to ensure influencers have the qualifications they claim.

For example, certified financial planners (CFPs) have to complete a board exam and continue ongoing education to remain certified. You can verify an individual’s CFP background here .

Another globally recognized designation is a chartered financial analyst (CFA). It’s one of the most respected titles in finance and requires passing three exams. You can check a person’s membership status here .

The WallStreetZen report found only 0.8% of TikTokers giving stock advice have finance-related credentials.

Foster said it’s also important to remember that follower count isn’t the same as expertise.

“Being a successful social media influencer is far different than being a great financial advisor,” she said.

Ask yourself: What’s in it for them?

When weighing someone’s credibility it’s important to consider their incentives. If a video feels more like a sales pitch than an effort to share useful information then you might not be getting objective, fact-based tips.

Foster said it’s worth asking yourself two questions:

1. Why does this person want to share this advice?
2. How does this person, if at all, benefit from what I’m doing with my finances as a result of this video?

The WallStreetZen report found that 70% of stock influencers self-promote their services, yet just 10% display disclaimers on their profiles.

Beware of get-rich-quick schemes

There’s no such thing as a free lunch. All investments come with some degree of risk and any influencer who suggests otherwise should set off major alarm bells, Foster said.

Be suspicious of anyone who promises unrealistic returns, especially on a short time horizon. If it sounds too good to be true, then it probably is.

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