Viral Tiktok Chase ATM “Glitch” Turns Out to be Illegal Check Fraud
- Yash Dubbs
- Oct 26, 2024
- 2 min read
By: Yash Dubbs
The recent viral TikTok trend involving a so-called "Chase ATM glitch" underscores the dangers of falling for social media fads, especially when they promise easy money. The trend encouraged people to deposit large checks at Chase ATMs and withdraw a smaller but significant portion of the funds before the check cleared. Many believed they had discovered a loophole to get "free" cash, but Chase Bank has since clarified that this is a form of check fraud—a criminal act with serious consequences.
Chase Bank quickly addressed the issue and warned the public not to attempt the trend. The bank explained that the system allowing limited access to funds before a check fully clears is a standard banking practice, not a glitch. Those who participated in the trend ended up with negative account balances once the checks inevitably bounced, leaving many to face severe financial repercussions.
At its core, this trend exploited a delay in check processing. Banks often allow customers to access a portion of the deposited check's value before the check is fully verified and cleared. This safety net is designed to help customers access money quickly in good faith, but when a fraudulent or insufficient check is deposited, the transaction fails, and any withdrawn money is immediately deducted from the account—often leaving it in the negative.
Financial educator Jim Wang emphasized that “bank errors in your favor are almost never in your favor.” He noted that in this case, the "glitch" was actually a case of people committing check fraud. Despite the allure of easy cash, these actions are illegal, and banks like Chase have systems in place to recover the funds and hold individuals accountable.
The trend also highlights the risks of viral challenges on platforms like TikTok. While some trends may seem harmless or fun, others can have serious financial and legal consequences. This incident serves as a cautionary tale: blindly following online trends, especially those that involve money, can lead to criminal charges and significant personal debt. It’s crucial for individuals to think critically before engaging in any activity that promises quick financial gain, as the consequences often outweigh the temporary thrill.
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