Check Fraud and the Viral Chase Bank “Glitch”
Earlier this year, Chase Bank experienced a “glitch” that enabled its customers to take out a seemingly limitless amount of free money. The “glitch” went viral on social media platforms like TikTok. Yet is this “hack” actually a way to get free money? No, it’s not. In reality, it is check fraud and it could lead to criminal charges.
What is Check Fraud?
When it comes to check fraud, it is the epitome of a white collar crime. This type of fraud is when money is taken out of an account, but there are insufficient funds to cover that withdrawal. In today’s age, this covers not just checks but also other types of digital accounts, such as Paypal, Venmo, or CashApp. It has also been called “passing bad checks” or in some cases “kiting checks.”
If a person knows the account does not have adequate funds, that can raise a person’s culpability if they choose to write the check anyway. This can be distinguished between just simply bouncing a check for a mistake. In other cases, a person can be charged for using account information that is entirely fake or documents that are forged.
Check fraud is a misdemeanor or a felony, depending on how much money was involved. Moreover, possessing a forged instrument can also be a separate charge. In addition, there may be larceny charges. While the offense can be charged in the state system, the federal government also has jurisdiction to pursue criminal charges as well.
Note that check fraud could not only trigger criminal charges. In addition, it could impact an individual’s credit score or affect their ability to obtain bank accounts.
Chase Bank “Glitch” is Check Fraud
Recently, Chase Bank experienced a “glitch” that enabled customers to access cash to which they weren’t entitled. According to news reports, the “glitch” would allow customers to deposit checks at ATMs and then quickly withdraw cash. In essence, the customer can get the cash before the bank realizes the check will bounce or, in some cases, is an entirely fake check. After customers became aware of the “glitch,” many people posted about it on TikTok and called it a “hack.” In reality, this is merely check fraud.
However, Chase Bank has the receipts – literally. For those who took advantage of the “glitch,” Chase Bank is not just giving its customers free money. If an individual took out money on a bogus or bounced checks, they will see a corresponding negative balance on their account. In some cases, Chase Bank is said to be turning information over to law enforcement as well.
References:
- Khaleda Rahman, “Chase Bank ‘Glitch’ Goes Viral: What We Know, Don’t Know,” Newsweek (Sept. 1, 2024). Available at: https://www.newsweek.com/chase-bank-glitch-viral-1947227 (last accessed Sept. 23, 2024).
- Mars Ramos, “‘I did the Chase bank glitch’: Woman issues warning after taking advantage of Bank of America glitch 13 years ago,” Daily Dot (Sept. 5, 2024). Available at: https://www.dailydot.com/news/chase-bank-glitch-fraud/ (last accessed Sept. 23, 2024).
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