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The Chase Bank glitch is a loophole that went viral on TikTok. It allowed customers to withdraw exorbitant sums of money from Chase ATMs, regardless of insufficient balances. However, on September 2, 2024, Chase Bank clarified that such an action is illegal and constitutes check fraud.
The trend went viral when users started posting videos online of them depositing fictitious checks at the Chase Bank ATMs, and before the check could bounce, they would extract the money. This is because banks typically take a few days to verify the authenticity of a check or loan. As of today, it is still unknown how many people profited off of this trick.
Chase Bank released a statement, dubbing the act "fraud, plain and simple"
On Monday, September 2, Chase Bank said in a statement to Post that the loophole has since been rectified.
"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."
Many took to X or TikTok to share the gimmick. In one video, a young man throws his newfound money in the air as he smiles ear-to-ear with his friends. He can also be seen revering his Chase Bank ATM card as he drives around town in a car. Another image shows a long line-up outside the ATM vestibule in New York as they try to claim their free bucks.
However, things quickly went sour, as those who engaged in this Case Bank glitch scheme now find themselves with massive negative balances in their accounts, meaning the checks finally did bounce after all. Their accounts have also been penalized with seven-day holds. One user even claimed they owed $40,000 under the label "ATM deposit error."
Financial educator Jim Wang weighed in on the gravity of the situation. He said in a TikTok video,
"If you ever find mysterious money deposited into your account due to a bank error, report it immediately. It's not your money, and the bank will want it back. Don't spend it, don't move it, just leave it alone and notify the bank."
He then added that because it is in the account, it doesn't make it legitimate. He also said that such "tricks" could culminate in legal and/or financial issues, and even a blow to credit, and that one should not believe everything they come across on social media. He added,
"In the case of this 'glitch,' it was just check fraud. You're going to get in huge trouble if you do something like this."
Social media reacts with ridicule
In light of the trend, several users reacted to the trend on X to ridicule those who participated.
"Check kiting. It's called check kiting. And it's been around since the invention of… checks." One user pointed out.
"On top of it, they film themselves afterwards and admit to it." Another ridiculed.
"Good luck with the felony fraud charges to all who participated!" One user chimed in.
Forbes reported on September 1, 2024, that this isn't the only method to execute fraud. In the past, social media users have engaged in other tricks, such as Pyramid schemes, PPP loan fraud schemes, and Cash app scams.
