(KRON) — Recent videos posted to social media show people parading around with impressive sums of cash after they allegedly benefited from a “glitch” with their Chase Bank accounts.
Except, it isn’t a glitch. It’s “fraud, plain and simple,” according to Chase.
The trend entails depositing a faulty check into a Chase account and then withdrawing the money before the check is flagged as illegitimate.
Those participating in the trend were seemingly exploiting banking rules that allow for at least some of a check’s total funds to become available before the check has cleared. While that process can take a day or two, some ATMs allow access to those funds immediately, NBC News notes.
“We are aware of this incident, and it has been addressed,” a Chase spokesperson told Nexstar’s KRON. “Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple.”
Some users have found out the hard way. Other videos on social media appear to show users deep in debt after Chase retroactively takes the money back.
Check fraud can be considered a misdemeanor or a felony, depending on how much money was involved, according to fraud protection firm SGN Banking Systems.
It’s unclear how many customers — and how much money — were involved in the trend, a source told CNN. Chase representatives also would not say whether regulators are investigating.
Other users on social media have also acknowledged the fraudulent behavior, with one TikTok user describing the trend as “not a life hack,” but instead, “robbery.”
“You went to the bank and took $50,000 that didn’t belong to you. That’s not a life hack, that’s called robbery.”
