Chase Bank Issues Warning Against Viral 'Glitch' Scam

Chase Bank has issued a stern warning to its customers, urging them not to engage in a viral trend circulating on TikTok and X (formerly Twitter) that involves depositing fraudulent checks and withdrawing the funds before the checks bounce, a practice known as check fraud.

• The trend falsely claimed a systemwide "glitch" allowed users to deposit fake checks, withdraw the money, and keep it without consequence.
• Chase Bank clarified that this is not a "glitch" but rather a deliberate attempt at check fraud, which is illegal.
• The bank stated, "Depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple."

Viral Trend Spreads Across Social Media Platforms

The viral trend appears to have originated on X, where a user shared a screenshot showing an excessive balance of over $80,000 in their account after allegedly depositing a fake check. Videos and posts about the supposed "glitch" quickly spread across TikTok, with some users claiming to have successfully withdrawn cash from ATMs after depositing fraudulent checks.

• Videos purportedly showed lines forming outside Chase Bank branches as people flocked to attempt the scam.
• However, others soon shared screenshots of massive negative balances and holds on their accounts, indicating the bank had caught on to the fraud.

How the Check Fraud Scam Works

The viral trend exploits a common check fraud tactic involving depositing counterfeit checks and quickly withdrawing the funds before the check bounces.

• Large checks deposited digitally or at ATMs are often placed on a temporary hold while the bank verifies their authenticity.
• However, some ATMs allow customers to access a portion of the deposited funds immediately, enabling fraudsters to withdraw the money before the check clears.
• Scammers may open bank accounts with fake identities, deposit counterfeit checks, and then abandon the account with a negative balance.

Consequences of Committing Check Fraud

While some participants mistook the trend for a harmless "money hack," Chase Bank and legal experts have emphasized that engaging in check fraud is a serious crime with severe consequences.

• Participants who withdrew funds from fraudulent check deposits could face criminal charges for theft or fraud.
• The bank will hold them accountable for the entire amount withdrawn once the checks bounce.
• Legal experts warned that participants could face fines or even jail time for committing check fraud.

Social Media Backlash and Warnings

As the trend gained traction, many social media users began mocking and warning those who had attempted the check fraud scam, emphasizing the legal and financial risks involved.

• TikTok users joked about waking up with enormous negative balances and warned others that they had no chance of outsmarting Chase Bank.
• One viral TikTok video stated, "That's not a life hack, that's called robbery. You're going to jail. Prison actually."

Importance of Financial Literacy and Responsibility

The viral trend has highlighted the need for increased financial literacy and responsibility, particularly among younger social media users who may be more susceptible to potentially harmful trends or scams.

• Experts emphasize the importance of understanding basic financial concepts and the legal implications of engaging in fraudulent activities.
• Banks and financial institutions should prioritize educating their customers about common scams and the consequences of participating in illegal activities.
• Social media platforms also have a responsibility to monitor and take action against the spread of harmful or illegal content.