Chase: Viral ATM 'glitch' likely check fraud
TikTok videos claim people can get 'free' cash
By: Fernando Cervantes Jr.
USA Today
..... Over the weekend, [08/31-09/01/2024] a number of viral TikTok videos had people across the country saying that they could get "free" cash from chase Bank ATM. But according to the bank, it was nothings but a simple glitch, and those customers getting "free" money were actually committing fraud.
.....
Videos spread across TikTok showing people depositing checks for large amounts of money at ATMs and then making a withdrawal for a smaller but still substantial amount before the check cleared.
..... Once they got the cash, they believed they had found a glitch in the system and were getting free money.
..... It all might sound to good to be true, and it really is, because this process is just a from of check fraud, a criminal offense. Chase Bank, in a statement to USA today, said the issue has now been addressed. In the same breath, the bank is also warning people to not try this viral trend.
..... the trick revolves around a banking standard that lets people depositing checks have access to a portion of the money deposited before the full total of the check clears.
.....
In the TikTok trend people wrote checks for large amounts of money and withdrew as much money as they could before the check would inevitably bounce.
..... "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.
..... Videos that became viral over the past weekend [08/31-09/01/2024] show people trowing dollar bills in the air, celebrating their newfound richness, But other videos show the aftermath of the glitch, with one user showing their negative account balances in their Chase accounts after trying the hack.
..... Jim Wang, a financial educator on Instagram, said people's negative balances came from the bank putting holds on their accounts or deducting the stolen cash from their accounts.
.....
"Bank errors in your favor are almost never in your favor. In the case of this 'glitch', it was just check fraud," Wang said on Instagram.