Chase Bank Blasts Content Creators For Promoting Viral Bank Fraud Trend They Called A 'Glitch'

A new social media craze has caught fire and Chase Bank is stepping in to shut it down.

On TikTok and X, users have been sharing videos that promote a scheme to make quick cash. The method involves writing a fake check, depositing it at an ATM, and withdrawing the money before the check clears and bounces.

Chase Bank warned that the scheme isn't a shortcut to riches but instead a direct path to legal trouble. The bank swiftly condemned the fraudulent activity — what some called a "glitch" that people could exploit — labeling it as a clear case of bank fraud.

"We are aware of this incident, and it has been addressed," a Chase spokesperson said to 'NBC News.' "Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple."

It's uncertain whether this has become a widespread trend or if anyone has succeeded in using the so-called "glitch" to commit bank fraud. However, one video depicted a crowd gathering at a Chase ATM in New York, hinting that the scheme might be in play.

According to 'CNN,' Chase's parent company, JPMorgan is still determining how many Chase customers and how much money were involved in the incident.

Nearly 80% of young adults receive financial advice from social media, 'Forbes' reports, with TikTok being the third-biggest platform for those surveyed. Topics including "gaming the system," "passive income," and "get rich quick plans" are ranked as the most popular types of financial advice videos that target Gen Z, per the outlet.

This isn't the first time a viral social media trend has encouraged illegal activity. During the Covid-19 pandemic in 2020, a TikTok video demonstrated how to steal specific Hyundai and Kia models, leading to a surge in thefts and property damage.

Tags

Fraud, Social media, Viral