Some TikTokers have been trying to exploit a Chase Bank "glitch" only to discover it came at a huge cost.
The trend went viral on social media, despite experts warning of the risks of check fraud. It all began due to a technical issue at Chase Bank which reportedly allowed customers to withdraw large sums of money even though they didn't have sufficient funds in their accounts.
Usually, when a check is deposited or a loan is requested, banks take a few days to carry out safety protocols and ensure no issues are at play. However, the technical glitch seemed to be skipping all those security safeguards, crediting some of the sham deposits into customers' accounts before the checks cleared.
This meant that some people tried to exploit the tech anomaly by depositing fictitious checks or seeking huge loans at ATMs. Many people posted videos and messages about their experiences on TikTok and X, formerly known as Twitter, and after going viral online, the trend also spread offline.
A person posted a video of people lined up outside Chase locations in New York City, allegedly trying to take advantage of the "viral glitch to get free money". Another group of people filmed themselves dancing and throwing bills into the air outside a chase bank in Yonkers in Westchester County, New York, while others shared a clip of themselves putting their heads out of a car's window with their Chase cards in their mouths.
But Chase quickly fixed the bug and warned customers of the risks of doing something like this. The bank said in a statement: "We are aware of this incident, and it has been addressed. Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple."
Some people who tried to take advantage of the glitch had their accounts locked or were hit with huge negative balances, with one user posting a screenshot of deductions labeled "ATM deposit error" for a total of nearly $40,000. Financial educator Jim Wang warned that those who tried to exploit the technical issue will face serious consequences.
He told the New York Post : "So what people discovered over the last few days was that Chase was having problems with their ATMs. They were able to deposit checks and get the balances and were able to withdraw them.
"Chase was pretty on top of it, within a day it was all fixed and the people that were doing this were seeing big holds in their accounts or huge negative balances." He continued: "In the case of this 'glitch,' it was just check fraud. You're going to get in huge trouble if you do something like this."
The expert said that if a customer notices that a large amount of money is deposited into their account due to a bank error, they should inform their bank immediately. He explained: "Just because money appears in your account, doesn't mean it's literally yours. If you spend it and are forced to pay it back you're going to have to figure out a way to pay it back."
The trend was also debunked by Austen Allred, co-founder and CEO of Bloom Institute of Technology, who wrote on X: "So the ‘Chase unlimited money glitch’ that went viral on TikTok was: Writing yourself a giant check, mobile depositing that check, going to an ATM to withdraw cash before the check cleared…Literally just committing check fraud." Check fraud is a crime that can be prosecuted at the state or federal level and carries penalties of up to a $1 million fine and 30 years of federal imprisonment.
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