The Chase Bank "Glitch" Scam: A Viral Trend Turned Financial Nightmare

A recent social media trend involving Chase Bank ATMs has caught the attention of many, promising "free money" but ultimately leading to serious financial and legal consequences for those who participated. Here's what you need to know about this viral scam:

The Alleged "Glitch"

The so-called Chase Bank "glitch" was not actually a glitch at all, but rather a form of check fraud[1]. Participants would:

1. Deposit fake checks for large amounts of money into Chase ATMs
2. Withdraw cash before the checks could be verified and rejected
3. Share videos of their "success" on social media platforms like TikTok

This exploit took advantage of the banking system's standard practice of making a portion of deposited funds available before checks fully clear[4].

Consequences for Participants

Those who attempted to exploit this "glitch" faced severe repercussions:

• Negative Account Balances: Many users reported massive negative balances in their accounts once the fraudulent checks were discovered[2].
• Account Freezes: Chase implemented seven-day holds on affected accounts[1].
• Legal Troubles: Participants essentially committed check fraud, a criminal offense[4].

Those who attempted to exploit the so-called Chase Bank "glitch" by depositing fake checks and withdrawing funds before the checks were flagged as fraudulent could face significant legal consequences. This activity is classified as check fraud, which is a criminal offense. Engaging in such actions can lead to charges of wire fraud, a felony that may result in jail time and restitution[1][4][5].

Chase Bank has addressed the issue by placing holds on affected accounts and pursuing the recovery of any illegally withdrawn funds. Many participants found themselves with negative account balances, sometimes amounting to tens of thousands of dollars[1][3][4]. Legal experts and financial advisors have warned that these actions are not only illegal but could also lead to long-term financial repercussions, including damage to credit scores and exclusion from banking services[4][6].

In summary, individuals who participated in this fraudulent activity are at risk of facing serious legal and financial consequences, emphasizing the importance of understanding and adhering to legal banking practices.

Chase Bank's Response

Chase Bank quickly addressed the issue and released 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[3]."

The bank has begun the process of recovering illegally withdrawn funds and freezing accounts involved in the fraud[4].

Warnings from Financial Experts

Financial educators and experts have strongly cautioned against participating in such schemes:

• Jim Wang, a financial educator, warned that "Bank errors in your favor are almost never in your favor. In the case of this 'glitch,' it was just check fraud[4]."
• Austen Allred, CEO of the Bloom Institute of Technology, criticized TikTok for glamorizing illegal schemes as clever life hacks[7].

The Bigger Picture

This incident highlights a concerning trend of social media-driven financial scams. Similar schemes, such as pyramid schemes, PPP loan scams, and cash app tricks, have also gained traction online[6]. It's crucial for individuals to be aware that:

1. If something seems too good to be true, it probably is.
2. Financial "hacks" promoted on social media often involve illegal activities.
3. Participating in such schemes can lead to severe consequences, including fines, penalties, jail time, and long-term damage to one's credit score and financial reputation[6].

In conclusion, the Chase Bank "glitch" serves as a stark reminder of the importance of financial literacy and the potential dangers of following viral trends without proper understanding or consideration of the consequences.

Citations:
[1] https://en.as.com/latest_news/what-is-the-viral-chase-bank-glitch-scam-that-allows-you-to-withdraw-money-does-it-really-make-people-rich-n/
[2] https://www.newsweek.com/chase-bank-glitch-viral-1947227
[3] https://www.theguardian.com/us-news/article/2024/sep/02/chase-bank-system-glitch
[4] https://www.cnn.com/2024/09/03/business/chase-tiktok-trend/index.html
[5] https://abc7chicago.com/post/viral-videos-people-stealing-money-chase-atms-were-plain-check-fraud/15262970/
[6] https://www.youtube.com/watch?v=t4v5uxy05a4
[7] https://www.yahoo.com/news/viral-chase-bank-glitch-promised-175312943.html
[8] https://www.forbes.com/sites/rahkimsabree/2024/09/01/viral-chase-bank-glitch-isnt-the-hack-people-thought-it-was/