Who doesn’t want free money? In the world of video games, this is possible with a simple cheat code — type “Motherload”. The SimsWatch the money flood in, refurbish your entire palace. For a brief, wild moment, a viral TikTok trend suggested that such shortcuts might exist in real life.
This is how the money “hack” worked: Over the weekend, news broke of a “bug” on TikTok that claimed Chase Bank was allowing people to withdraw funds from deposited checks. People take advantage by writing huge checks themselves, depositing them, and then withdrawing piles of cash at ATMs. “We are aware of this incident, and it has been addressed,” a Chase spokesperson wrote to us via email. “No matter what you see online, depositing a fraudulent check and withdrawing funds from your account is fraud, plain and simple.” Chase did not clarify how much was withdrawn, or what the response would be for those who cashed the fake checks.
From Weekend Bonanza, the video people Those accused of defrauding Chase with hundreds of thousands of negative balances are also beginning to emerge. While there are countless videos talking about the so-called “Chase Money Glitch” on TikTok, many of the top ones are wisely noting that Fraud a big bank Money is unlikely to end well. Chase fraud is not particularly sophisticated, and very easy to trace — especially when you brag about it online.
“It’s pretty much traditional check fraud,” said Kimberly Palmer, a personal finance expert at NerdWallet “There’s nothing really new about it.” Banks have reported Rising rates of check fraud In recent years, that can take different forms. This form, where you write a check that you can’t take advantage of and return the money the bank has provided in the interim, is known as “check kiting,” but someone can steal your check and carefully change the amount and payee. Counterfeit check scams It’s also on the rise: you get sent a check from someone asking you to deposit it, using various lies and excuses as to why they can’t do it themselves. Then they ask you to send some or all of the money back. It’s a scam because the funds from the check may appear in your account, but that doesn’t mean the check has already cleared, Palmer said. By the time the bank verifies that it was a fraudulent check and bounces the money, you’ve already sent cash back to the fraudster.
“If you cash a check that’s fake and then withdraw the money, you’re still responsible for withdrawing that money,” Palmer said.
Chase did not respond to questions about whether it was a flaw in its system that would normally allow people to withdraw more money from a newly deposited check, or whether they were exploiting the normal way a portion of the funds are made available. Someone deposits a check, known as a “float”. Usually, there is one waiting period The full balance of a deposited check may take several business days to appear in your bank account — for larger amounts, or if you don’t have an open account with the bank. “Sometimes, as a courtesy, the bank makes a portion of the check immediately available,” notes Palmer U.S. banks also typically have to build At least $225 available by the next business day.
It’s worth noting that even when banks make mistakes — no fraud involved — customers usually You will not get to keep the money. Financial institutions do not operate under the “No Taxi-Baxis” rule.
The 2024 Chase check fraud incident is emblematic of a pattern of financial pro-tips and quick hacks offered on social media platforms like TikTok: They’re not smart shortcuts to saving money or making more. At best it’s bad advice that won’t improve your finances, and at worst it’s downright illegal. An example from last year: a TikToker telling viewers they could easily charge a $100,000 watch Business credit cards And it doesn’t pay off. “With business credit, you are not personally liable for that line of credit,” claims user @greenthumbgotbands. video. (In a later video, he says It was a joke.) To be clear, even with a limited liability company, or LLC for short, you can be fully personally liable for business debts, especially when it’s fairly easy to prove that you were. Mixing personal and business purchases – Like a fancy watch. Your credit card company may also be off Your business line of credit. Another earlier this year TikTokers have made waves Promotes a simple strategy to increase your credit limit by: Shipment sent to your own LLC and then pay them with a credit card. It looks like your business is generating a lot of revenue, and it looks like your credit card usage is high, both of which are factors used to determine a higher credit limit. This is also probably a fraud.
In Australia, a viral financial tip in 2021 advertised as a way to get a quick government loan led to the country’s tax office. $4.6 billion in fraud. The advice, widely circulated on TikTok, directed people to register a fake business and claim tax refunds on fake business expenses.
The genre of uncertified money gurus teaching social media disciples how to get rich quick has exploded in recent years. While you can find some sane, common-sense guidance on money, bad TikTok financial advice ranges from ethically questionable to downright devastating, whether it’s advising homeowners to get a roommate and charge their full monthly mortgage (or more). by doing They are the landlords—so Called “house hacking”. — or maxing out credit cards to buy an Airbnb property you can’t actually afford. “I see a lot of real estate advice that doesn’t really make sense,” Palmer says. “Nothing is stopping someone from calling themselves a financial expert or adding letters after their name on social media.”
If you’re really unlucky, the advice you unknowingly follow from TikTok won’t just tank your bank account or your credit score — it could actually be a crime. It is not clear what will happen to fraudsters who siphon money. “It’s really up to Chase if they want to follow through and prosecute the fraud that’s been done to them,” Palmer said. Check fraud laws vary across jurisdictions, but in some states writing a bad check can be a felony if the amount is large enough (for example, in Texas, it $2,500)
With the proliferation of digital banking and personal finance apps, it’s become easier to download an app, open an account with a financial institution, and start making some pretty productive money-related decisions. Many of our financial transactions and systems have an idea that doesn’t seem grounded in reality — money isn’t cold hard cash, it’s a number displayed on an app. Overspending is easy, and easy to do Just cheating. The FTC made a report A record amount of Rs Lost to scams last year, nearly $10 billion was reported to have been lost. Younger people, spending more time online, are actually more likely to fall prey to fraudsters than baby boomers.
“People have to be really skeptical when they see these kinds of suggestions online, because they can easily lead you down a path where you’re probably breaking the law without even realizing it,” Palmer says. The “I didn’t know” defense usually doesn’t absolve someone in the eyes of the law, even if it leads to a lesser sentence.
It’s also true that sometimes — if you’re already rich or in the right, secret financial circles — you can Get away with fraud For years you can wade through murky waters where the law is untested whether you’re simply minimizing or outright avoiding the taxes you owe. Tax laws and benefits are already structured In favor of capital and the super-richAnd even if you run into legal trouble, you can hire lawyers to mount a strong challenge in court. But for most of us, there isn’t a shortcut to building a pile of money.
