Chase Bank ATM Glitch: A recent viral trend on social media platforms like TikTok and X has highlighted a dangerous and illegal practice. Users claimed that by taking advantage of a so-called “Chase Bank ATM glitch,” they could deposit fake checks and withdraw money, even when they didn’t have the funds in their accounts. However, financial experts and Chase Bank have confirmed that this is not a glitch but a serious form of check fraud. Participating in this scam can have major legal and financial consequences.
What Is the Chase Bank ATM Glitch?
Over the past weekend, several social media posts claimed that people could write checks for more money than they had in their account, deposit them at Chase ATMs, and immediately withdraw cash before the check bounced. Many believed they were taking advantage of a system error. However, Kimberly Palmer, a personal finance expert at NerdWallet, clarified that this viral trend is actually check fraud and is illegal.
This practice, also known as “check-kiting,” involves using fake or insufficient checks to inflate the balance in an account temporarily. While some users on social media thought they were being clever, they were actually committing a serious crime.
Why This Trend Is Illegal
According to Chase Bank, the so-called glitch isn’t a glitch at all. It’s an illegal scheme where people deposit fake checks and withdraw the money before the bank realizes the check has bounced. Chase addressed the issue quickly, warning users that this kind of action is check fraud.
When a check is deposited, banks typically allow customers to access a small portion of the funds right away, even before the check clears. However, if the check bounces or is discovered to be fraudulent, the person who withdrew the money is responsible for paying it back. This can lead to negative balances, penalties, or even criminal charges.
Legal Consequences of Check Fraud
If you were tempted to participate in this trend, you could face serious consequences. Financial planner Uziel Gomez explains that check fraud can result in your account being frozen or even closed. Depending on the severity of the offense, you could be fined or face legal action. In extreme cases, check fraud can lead to incarceration.
Legal penalties vary by state, but check fraud is treated as a serious crime in the U.S. Even if you unintentionally deposit a bad check, you are still responsible for returning the money if the check bounces.
What to Do If You Participated
If you were involved in this viral Chase Bank ATM glitch trend, financial experts advise returning the money as soon as possible. Willa Williams, an accredited financial counselor, warns that keeping money from a fraudulent check can lead to bank fees, penalties, or even fraud charges. The best course of action is to return the funds immediately to avoid further complications.
While it’s unclear how many people participated in this trend, it’s important to understand that even those who didn’t intend to commit fraud can still face the same consequences. If you find yourself in this situation, contact your bank right away.
The Rise of Check Fraud
Unfortunately, this recent trend is just one of many check fraud schemes that have been circulating. In 2022 alone, banks reported nearly 680,000 cases of check fraud, nearly double the number from 2021. Scams like this are becoming more common, and it’s essential to be cautious when depositing checks or responding to viral trends on social media.
Don’t Fall for Social Media Scams
Many young people are getting their financial advice from social media, but not all advice is good. According to a 2023 survey, 79% of Millennials and Gen Z adults reported getting financial tips from platforms like TikTok, but 1 in 4 said they lost money because of bad advice.
It’s important to remember that there is no such thing as easy or fast money. Always verify financial advice from trusted sources and think twice before participating in any get-rich-quick schemes. If something seems too good to be true, it probably is.
How to Protect Yourself
If you think you’ve been a victim of a check fraud scheme, contact your bank immediately. Kimberly Palmer advises closing your current account and opening a new one to prevent further fraudulent activity. If you notice an unexpected deposit in your account, don’t assume it’s free money — banks will recover these funds once they identify the error.
Conclusion
The Chase Bank ATM glitch trend is a reminder that viral social media schemes can lead to real-world consequences. Check fraud is illegal, and even if you unknowingly participate, you could face serious penalties. Always be cautious when handling your finances, and don’t trust advice that promises fast money.
