US banking giant Chase issued a stern warning against a concerning trend that has emerged on social media where customers attempted to exploit a system glitch to fraudulently withdraw more money than they had in their accounts. The trend, which became popular on TikTok, involved users depositing bad checks for large sums of money and then quickly withdrawing the cash from Chase ATMs before the checks bounced.
Chase responded to the viral trend by fixing the problem and issuing a warning that depositing fraudulent checks and withdrawing the funds is considered plain and simple fraud. The bank emphasized that the practice is illegal and not to be taken lightly.
While the exact number of customers who participated in this scheme is unknown, social media posts showed participants celebrating their successful withdrawals, only to later face significant negative balances in their accounts once the bad checks bounced.
Social media users and experts alike reacted to the trend with humor and criticism, with many pointing out that the practice is a form of check fraud known as “check kiting.” Cornell University law professor Dan Awrey highlighted the long-standing nature of this illegal activity, underscoring the importance of ethical banking practices.
Chase’s response serves as a reminder of the consequences of engaging in fraudulent activities and the importance of upholding integrity in financial transactions. The bank’s firm stance against the trend sends a clear message that attempting to exploit loopholes in the banking system will not be tolerated.
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