JP MORGAN Chase has announced that it plans to report those who committed check fraud as part of a TikTok craze.
According to the bank, the company plans to share all the evidence gathered with police departments across the country.
Chase has since reported that the internal glitch that first sparked the trend has been fixed, The Wall Street Journal reports.
Sources close to the bank told the outlet Chase doesn’t quite yet know the full scope of its losses but estimates thousands of people were involved.
“As with any fraud-related issue, we review internally and refer to law enforcement as appropriate,” a Chase spokesman said.
“Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple.”
Chase said it froze some accounts already and will continue to do so if they find more evidence of fraud
GLITCH IN THE SYSTEM
In a now-deleted TikTok video, a young woman is seen calling her mother and telling her she could get $40,000 to $50,000 out of her Chase account due to a glitch she found in the system.
Many users quickly shared several follow-up videos of them taking advantage of the glitch which allowed customers to deposit big checks as well as withdraw funds from an ATM even if sufficient funds weren’t available.
Standard procedure from the company would allow customers to withdraw a portion of deposited checks before it cleared.
However, during the glitch, users were able to withdraw all of the funds from a check before it had cleared.
Several users on X attempted to pass off the glitch as check-kiting.
“Influencers are the absolute dumbest people on the planet,” one person wrote on the social media site.
“There’s no glitch: it’s called check kiting and it’s been around for decades.”
It concluded: “The other thing is just loan defaulting. Can we please teach basic financial literacy?”
“Finding out the Chase ATM glitch was literally check kiting is a pretty good example of where the US education system stands currently,” another person said.
Chase Bank on the internal glitch
A spokesperson from Chase bank revealed that they plan to report everyone who engaged in check fraud.
“As with any fraud-related issue, we review internally and refer to law enforcement as appropriate,” a Chase spokesman said to The Wall Street Journal.
“Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple.”
‘THAT’S CALLED ROBBERY!’
One incredulous TikTok user blasted everyone involved.
“Chase Bank glitch? No, that’s called fraud, she said.
“You went to the bank and took $50,000 that didn’t belong to you,” she seethed.
“That’s not a life hack, that’s called robbery. You’re going to jail. Prison actually.”
RISING NUMBERS
Check fraud has seen a rise in recent years.
The act of committing fraud is a federal crime and also illegal in several states as well.
Those who find themselves accused of fraud will most likely be facing charges from the state where they are accused.
If a person is convicted, they face up to a year in jail and a fine of up to $1,000.
If the amount stolen exceeds $2,000, the person will be charged with a Class D felony in the second degree.
