A new TikTok trend has people risking prison time for a “free money” hack that is really just run-of-the-mill fraud.
In a barrage of videos over Labor Day weekend, social media users were buzzing about the “Chase Bank glitch,” which was supposed to be an easy way to get free cash.
A spokesperson for Chase Bank said that was far from the case.
“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,” a Chase spokesperson said in a statement to Coins2Day.
How it works is someone writes a fake check and deposits it in their own bank account at an ATM. Usually there is a period of time instituted by the bank before the check clears, but some of the money becomes available quickly. Those who tried to pull off the supposed easy-money hack withdrew cash from ATMs, knowing the check they wrote wouldn’t clear, with the idea that the bank would just accept it with no repercussions to them.
Yet, reality struck for some social media users after Chase hit their accounts with withdrawals worth thousands of dollars, some with a note that apparently chalked it up to an ATM error. Regardless, the social media users were still on the hook for the money.
Yesterday, a glitch in Chase Bank's system allowed people to withdraw funds they weren’t entitled to, prompting the bank to place 7-day holds on the affected accounts.
— Open Source Intel (@Osint613) September 1, 2024
As a consequence, chase account holders who participated in this glitch are now dealing with massive negative… pic.twitter.com/T0M1FULvoW
The Chase Bank trend is just the latest “get rich quick scheme,” a centuries-old concept that has been resuscitated by social media, drawing desperate people into financial crime. During tax season, several influencers on TikTok falsely advised people that they could stop paying taxes by illegally exempting themselves on an IRS form. Others have suggested people can skirt taxes via the creation of an S-corp, while some have recommended flat out PPP loan fraud.
Many financial experts were quick to denounce the Chase Bank glitch. Dan Awrey, a professor of Cornell Law school wrote on X that this type of fraud is nothing new.
Check kiting. It’s called check kiting. And it’s been around since the invention of… checks. Https://t.co/YHnyUq2MjF
— Dan Awrey (@DanAwrey) September 2, 2024
Check kiting involves depositing a check from one bank without the necessary funds at another bank and using the period it takes for a check to be authorized to withdraw the money and deposit it in the first bank.
Some online also jokingly compared the actions of those who participated in the trend to the early check fraud perpetrated by Leonardo DiCaprio’s character and real-life convicted felon turned security consultant Frank Abagnale Jr. In the movie Catch Me If You Can.
The legal repercussions for check fraud can vary by state and the amount of money in question, but in New York the penalty could range between six months and 25 years in prison, Adam H. Rosenblum, an attorney and founder of Rosenblum Law, told Coins2Day.
Yet, while the penalties could be steep, Rosenblum cautioned that people with clean records and who took out less than $3,000 may be more likely to gain leeway, as long as they put the money back and consult an attorney.
“Very often, these consequences can be mitigated and minimized if things are handled in the right way,” he said.
