What is The Viral Chase Bank “Glitch”?
Over the weekend, a series of viral TikTok videos spread a dangerous myth: people could withdraw “free” cash from Chase ATMs by exploiting a supposed glitch. These videos had some users believing they had found a loophole, but in reality, they were committing fraud.
The viral videos showed TikTok users depositing checks for large amounts at Chase ATMs and then withdrawing a smaller, but still substantial, sum of money right after. In the videos, users claimed that they were able to pocket cash without it actually being deducted from their accounts. The claim spread quickly, with many jumping at the opportunity, thinking they’d discovered a “jackpot” bug in the system.
The TikTokers believed that by depositing these checks, they could instantly withdraw cash, even if the checks weren’t valid or cleared. However, this isn’t some secret trick—it’s fraud.
No, This isn't some "loophole"
While some TikTok users thought they had outsmarted the system, what they were actually doing was abusing the bank’s standard check deposit process. When a check is deposited, banks often make a portion of the funds available immediately, even before the check clears, as a convenience to customers. However, if the check bounces or is found to be fraudulent, the bank will reverse the transaction. This has led to a rude awakening for some, as Chase Bank begins investigating the withdrawals and taking action.
What will happen to the Perpetrators?
Chase Bank was quick to respond to these videos, stating that any customers who participated in this scheme were not taking advantage of a glitch—they were committing a crime. The funds these users withdrew are not free money, and once the bank processes the deposited checks, any invalid or bounced checks will be flagged. As a result, the amounts withdrawn will eventually be charged back to the customer’s account. We have already begun to see this, as many internet users have begun sharing their negative account balances after attempting the scam.
Customers who engaged in this activity could face serious consequences, including:
Account closures: Chase could close the accounts of anyone found exploiting this so-called glitch.
Fraud charges: Since this activity falls under check fraud, individuals could face criminal charges, potentially leading to fines or jail time.
Debt and Penalties: Those who withdrew money based on fake or invalid deposits will be required to pay back the funds, often with additional penalties.
Consequences of Check Fraud
Check fraud is a serious crime that can lead to significant legal trouble. Some of the potential consequences include:
Criminal charges: Check fraud can lead to criminal prosecution, with penalties that may include hefty fines or jail time.
Credit damage: Being caught in fraudulent activities can damage your credit score, making it difficult to secure loans, credit cards, or even housing in the future.
Loss of banking privileges: Banks like Chase may close your account and report your behavior to ChexSystems, which tracks customers with a history of fraud or mismanagement. This could make it difficult to open accounts at other banks.
As private investigators, this incident highlights the critical role we play in uncovering and preventing financial fraud. From the initial investigation to tracking down the culprits, private investigators are key in stopping the spread of such schemes and protecting both individuals and businesses from becoming victims.
The Role of Private Investigators in Financial Fraud
Fraudulent activity, whether it’s check fraud, ATM manipulation, or credit card scams, can quickly spiral out of control if not properly handled. Here’s how private investigators can step in and help:
Uncovering the Fraud:
Banks like Chase rely on thorough investigations to track down those involved in fraudulent activities. Private investigators work behind the scenes to uncover how these schemes are orchestrated, identify participants, and gather the necessary evidence for legal action.
Tracing Financial Activity:
In cases like the Chase ATM fraud, private investigators can follow the digital trail left by those who deposited invalid checks and withdrew funds. Using a combination of surveillance, digital forensics, and financial tracking, we can help banks and law enforcement identify the individuals behind the scam.
Assisting Victims of Fraud:
While some individuals knowingly participated in this viral TikTok scam, there may be those who were unaware of the legal implications or were manipulated into taking part. Private investigators can assist individuals in clearing their names if they were unintentionally involved or have been falsely accused of fraud.
Supporting Legal Action:
Once evidence is gathered, private investigators collaborate with legal teams to build strong cases against the fraudsters. This includes preparing reports, providing testimony, and offering expert insight into the methods used in the scam.
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If you suspect you’ve been involved in or targeted by a scam, Reach out to CGA Solutions
As fraud continues to evolve, especially through social media trends, private investigators are on the front lines, working to protect individuals and businesses from falling victim to these schemes. The recent Chase ATM “glitch” is just one example of how quickly fraud can spread—and how important it is to have experts who can uncover the truth and take action.
With over 25 years of experience, our licensed investigators work with Georgia and South Carolina businesses to gather the necessary information to help in your theft by conversion case. We provide organized retail crime investigations as well as standard criminal investigation services. Schedule a free consultation with our team today.
