The Chase Bank “glitch” Was Actually a Large Check Scam.
The so-called ” Chase Bank glitch ” went viral over the weekend, but it wasn’t so much a glitch as it was old-fashioned check fraud.
In popular TikTok videos, some people believed they could get “free” cash from Chase ATMs by writing fake personal checks on their accounts and withdrawing the “escrowed” money before the checks cleared. Chase has since responded to the trend by warning customers that you can’t actually use the banking system’s standard delay to withdraw more money than you actually have in your account.
This is another example of a fact I will repeat forever: TikTok is a never-ending stream of bad financial advice . Here’s the background on how the glitch worked and what you can do to avoid falling into the trap of this type of scam.
What was wrong with Chase Bank?
Last weekend I was glued to TikTok (more than usual) watching people openly commit check fraud under the guise of exploiting a banking “bug” or “glitch” that was really just an example of standard banking practice that gives away check. depositors get access to a portion of their money before the entire check amount is cleared.
In the case of this weekend’s fiasco, people posted videos of themselves writing checks for obscene amounts of money, depositing them into their accounts, and then withdrawing as much as they could before the check could bounce.
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Chase said in a statement that they have since addressed the system lag, and warned that the trend is actually an example of simple check fraud: “Regardless of what you see online,” Chase said in a statement, “depositing counterfeit checks and withdrawals from your account are fraud, plain and simple.”
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People who took advantage of the delay to get cash cannot keep the money free and clear. Since then, many of them have found their accounts blocked and with negative balances . Since the money was obtained fraudulently, the bank will expect it back and it would be a crime to keep it.
How to Recognize Bad Financial Advice on TikTok
Of course, you may not have fallen for the latest viral check scam. But everyone has scams , and it’s worth being able to spot them. As I’ve advised before , before taking financial advice from a social influencer, ask yourself these three questions about who is giving the advice.
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What are their powers? There are no fiduciary standards for becoming a “guru.” Check for certifications such as CPA (Certified Public Accountant) or RIA (Registered Investment Advisor). If they were born into a wealthy family and have tried to exert influence in one way or another in the past, be skeptical of their advice and recommendations.
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Is it too good to be true? In general, avoid “get rich quick” investment advice. Because if it really were true, why would this person want to share it with millions of people? If you can’t get it going, buy a financial advisor or at least do your research before trusting an Instagram infographic touting an effective investment strategy.
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Is this person trying to sell you something? This is the most important thing to consider before taking anyone’s financial advice. Be careful about purchasing certain products or promotions, especially if the person recommending them is a stranger on the other end of a TikTok account. After all, no stranger will care about your finances out of the goodness of their heart if they can make money by buying you something. Second video.