Chase Bank has responded to viral social media videos depicting people exploiting an apparent flaw in the bank’s system, saying that those customers were likely committing fraud. The issue allegedly involves people depositing fraudulent checks written for large sums of money at Chase Bank ATMs and then withdrawing a significant amount, believing they discovered a glitch that allowed them to get free money.
However, a spokesperson for Chase Bank has stated that those people were likely committing fraud, and the issue has been addressed. The bank also warned customers not to mimic what they’ve seen on the internet. The spokesperson noted that regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple.
The bank did not respond to questions about whether it is investigating the videos or whether law enforcement is involved, and it’s unknown how many Chase customers attempted to make such withdrawals. The phenomenon of exploiting bank glitches for financial gain has been described as check kiting, a form of check fraud where a person tries to cover “a bad check from one bank account to another.
People with several accounts can take advantage of this because it takes several days to process checks. Financial educator Jim Wang said that some people who attempt to bilk the bank out of money could have their accounts placed on hold, and if a large sum of money shows up in a person’s bank account, they should tell their bank right away. Check fraud can be a felony crime in some circumstances; if the fraudulent amount exceeds $500, there’s a higher chance of it being a felony rather than a misdemeanor.
