Chase Bank has been the target of a lucrative new fraud scheme. Throughout social media, people have documented a new scheme called the “Chase Money Glitch” in which they claim the financial institution Chase Bank has a glitch in their system that would allow anyone to withdraw thousands of dollars.
The supposed glitch comes in the form of an ATM not recognizing that a check is invalid and will instead honor any amount in which a person can withdraw those funds from an account. People all over the country were swarming to Chase Bank ATMs to perform this “glitch” in hopes of making a quick buck before the bank patches it out. The problem is that this was not a glitch, and rather just blatant fraud.
Check fraud is the illicit use or theft of checks to deprive an individual or entity of monetary funds. The people involved in this glitch participated in check fraud as they wrote invalid checks in hopes of depriving Chase Bank of funds. The people involved also failed to realize that there was no real glitch at all and that banks give temporary funds while they examine the check. Fraudsters have abused this feature for years by funneling funds through different accounts to avoid overdrafts or finding an unsuspecting victim to use their account to cash the check, in the promise of free money.
While fraudsters did just that and looked for victims with Chase accounts throughout this social media buzz, the majority of people took a different step that led to the inevitable consequences of this “glitch”. People would write themselves fake checks for enormous amounts and deposit them into their accounts. Personal accounts such as checking or savings that were connected to their entire identity, and included things such as their social security number.
When the bank deemed the checks invalid due to the originator not having the proper funds to able to write such a check, the bank charged back the accounts which led to thousands of people seeing their accounts be in the negative for thousands of dollars. See below for an example.
On the online dark markets, more experienced fraudsters seem to mock the more inexperienced people in their situation. This image below displays one fraudster making fun of the various people who attempted this “glitch” by explaining that you can’t just take money out of thin air and then post yourself doing a crime all over social media and not expect to get caught.
Now it seems that the “glitch” has dwindled as the same people who originally filmed themselves withdrawing vast amounts of money from the ATM are now posting their regret as they depict their over-drafted accounts - see a screenshot of one such post below.
Others have taken a more comedic approach and made satirical videos making fun of the situation. Chase Bank has responded in an interview from NBC News that they were made aware of the situation and doing internal investigations at the moment. Chase Bank has stated that, “Regardless of what you see online, depositing a fraudulent check and withdrawing funds from your account is fraud, plain and simple.”
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Wile, Rob. “Chase Bank is referring check fraud 'glitch' incidents to authorities.” NBC News. 6 Sept. 2024. Chase Bank is referring check fraud 'glitch' incidents to authorities (nbcnews.com)