Chase Bank Issues Urgent Fraud Warning After Viral ATM Glitch Videos.
Chase Bank is issuing a stern warning following the spread of viral videos on social media showing individuals exploiting what appears to be a glitch in their ATM system. Over the Labor Day weekend, TikTok and other platforms showcased users allegedly depositing fraudulent checks for large sums and then withdrawing substantial amounts, believing they had discovered a loophole for free money.
A Chase Bank spokesperson has clarified that these actions are considered fraud and stressed that the issue 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,” the spokesperson emphasized. The bank did not comment on whether it is investigating these videos or if law enforcement is involved.
This type of fraud, known as check kiting, involves covering a bad check with funds from another account to exploit the time delay in processing. While banks often resolve check kiting internally, severe cases involving third-party payments can lead to legal action, as explained by Cornell University law professor Dan Awrey on X (formerly Twitter).
Jim Wang, a financial educator and founder of WalletHacks.com, cautioned against attempting such schemes. He pointed out that people caught engaging in fraud might find their accounts frozen or face significant negative balances. “Bank errors in your favor are almost never in your favor,” Wang noted on Instagram. “If money appears in your account unexpectedly, inform your bank immediately.”
Engaging in check fraud can result in serious legal consequences. According to fraud protection company SQN Banking Systems, fraud exceeding $500 can lead to felony charges, carrying potential prison sentences and hefty fines. Misdemeanor charges, which can also involve fines and jail time, are possible for lower amounts.
In addition to criminal charges, victims of fraud, including banks, can seek civil compensation. The amount recoverable varies by state, adding another layer of risk for those tempted to exploit such glitches.
The message is clear: attempts to defraud financial institutions through such schemes not only breach the law but can result in severe penalties. As the chase for quick money continues, the advice from experts is simple—play it straight and steer clear of fraudulent activities.
Information sources for the Reddit Trolls:
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