MJP –
A ‘glitch’ fad got popular on TikTok, giving con artists access to free money from Chase ATMs.
This “glitch” tendency is now being called out as fraud by the massive bank Chase.
Many popular TikTok videos misled some customers into thinking they could get “free” money at Chase ATMs; however, the bank later explained that this was all an error and that the customers in question were perpetrating fraud.
Videos surfaced on TikTok over the weekend showing people using Chase ATMs to deposit big checks and then withdraw smaller ones, leading them to believe they had discovered a loophole.
But this is prohibited since it amounts to check fraud.
In a statement provided to CNN, Chase confirmed that the matter had been resolved and warned against trying anything similar.
The parent company of Chase, JPMorgan, is researching the incident to determine the number of customers affected and the overall amount of money involved, according to a source familiar with the case.
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There is no word yet from Chase on whether or not the matter is being investigated by regulators.
Not only that, but neither the Federal Reserve nor the Comptroller of the Currency would comment.
This fraud takes advantage of a banking regulation that gives customers access to some of their money before the check clears.
The people in the films cashed out as much as they could before their inflated checks bounced by writing cheques for inflated amounts.
It is “fraud, plain and simple” to deposit a fake check and then withdraw the money, according to a Chase representative.
While some participants appeared to be ecstatically throwing cash around, others demonstrated that their Chase accounts had negative balances following the “hack.”
This happened because the bank put a hold on their accounts or reversed withdrawals that weren’t permitted.
Jim Wang, a financial instructor, noted that several individuals had large negative balances.
If you end up with money because of this “glitch,” he warned, “It’s not your money, and when they figure it out, they will want it back.”
His advice was to just notify the bank and not touch the money.
