{"id":2979,"date":"2024-09-04T14:50:00","date_gmt":"2024-09-04T14:50:00","guid":{"rendered":"http:\/\/mobiledave.me\/?p=2979"},"modified":"2024-09-11T10:40:53","modified_gmt":"2024-09-11T10:40:53","slug":"that-chase-money-glitch-hack-was-just-fraud","status":"publish","type":"post","link":"http:\/\/mobiledave.me\/index.php\/2024\/09\/04\/that-chase-money-glitch-hack-was-just-fraud\/","title":{"rendered":"That Chase \u201cmoney glitch\u201d hack was just fraud"},"content":{"rendered":"
\n

\"\"

Chase called the TikTok trend \u201cfraud, plain and simple.\u201d<\/figcaption><\/figure>\n

Who doesn\u2019t want free money? In the world of video games, it\u2019s possible with a simple cheat code \u2014 type \u201cmotherlode\u201d in The Sims<\/em>, watch a flood of money roll in, redecorate your whole mansion. For a brief, wild moment, a viral TikTok trend suggested that such a shortcut could exist in real life, too.\u00a0<\/p>\n

The money \u201chack\u201d worked like this: Over the weekend, news of a \u201cglitch\u201d spread on TikTok claiming that Chase bank was allowing people to withdraw funds from a deposited check right away. People took advantage by writing themselves massive checks, depositing them, and then withdrawing stacks of cash at ATMs. \u201cWe are aware of this incident, and it has been addressed,\u201d a spokesperson for Chase wrote to us over email. \u201cRegardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple.\u201d Chase did not clarify how much money had been withdrawn, or what repercussions there would be for people who had cashed fake checks.\u00a0<\/p>\n

Since the weekend bonanza, videos of people<\/a> who had allegedly scammed Chase seeing negative balances in the tens of thousands have also started popping up. While there are countless videos talking about the so-called \u201cChase money glitch\u201d on TikTok now, many of the top ones are wisely noting that cheating a<\/a> big bank<\/a> out of money is not likely to end well. The Chase fraud isn\u2019t particularly sophisticated, and very easy to trace \u2014 especially when you brag about it online.\u00a0<\/p>\n

\u201cThis is pretty much traditional check fraud,\u201d says Kimberly Palmer, a personal finance expert at NerdWallet. \u201cThere\u2019s nothing really new about this.\u201d Banks have been reporting soaring rates of check fraud<\/a> in recent years, which can take different forms. This form, where you write a check you can\u2019t back and take advantage of the money the bank supplies in the interim, is known as \u201ccheck kiting,\u201d but someone could also steal your check and carefully change the amount and recipient. Fake check scams<\/a> have been on the rise, too: You get mailed a check from someone asking you to deposit it, using a variety of lies and excuses as to why they can\u2019t do it themselves. Then they ask you to send some or all of the money back. It\u2019s a scam because the funds from the check might show up in your account, but it \u201cdoesn\u2019t necessarily mean that it\u2019s already been checked,\u201d says Palmer. By the time the bank verifies that it was a fraudulent check and takes back the money, you\u2019ve already sent the cash back to the scammer.<\/p>\n

\u201cIf you cash a check that\u2019s fake and then withdraw money, you\u2019re still responsible for the money that you withdrew,\u201d Palmer says.<\/p>\n

Chase did not respond to a question on whether it was an error in its system that allowed people to withdraw more money than they typically could from a newly deposited check, or whether they were exploiting the ordinary way that a portion of funds is made available when someone deposits a check, known as the \u201cfloat.\u201d Usually, there\u2019s a waiting period<\/a> for the full balance of a deposited check to appear in your bank account \u2014 it can take a few business days for larger amounts, or if you don\u2019t have an open account with the bank. \u201cSometimes, as a courtesy, the bank does make a portion of the check available right away,\u201d notes Palmer. US banks are also generally required to make at least $225 available<\/a> by the next business day.\u00a0<\/p>\n

It\u2019s worth noting that even when banks make a mistake \u2014 no fraud involved \u2014 customers usually don\u2019t get to keep the money<\/a>. Financial institutions don\u2019t operate under \u201cno takesy-backsies\u201d rules.\u00a0<\/p>\n

The Chase Check Fraud Incident of 2024 is emblematic of a pattern of financial pro-tips and quick hacks offered on social media platforms like TikTok: They\u2019re not smart shortcuts to save money or earn a little more. At best it\u2019s bad advice that won\u2019t improve your finances, and at worst they\u2019re straight-up illegal. One example from last year: a TikToker telling viewers they can easily charge a $100,000 watch on a business credit card<\/a> and never pay it off. \u201cWith business credit, you are not personally held responsible for that line of credit,\u201d the user @greenthumbgotbands claims in the video<\/a>. (In a later video, he said it was a joke<\/a>.) To be clear, even with a limited liability company, or LLC for short, you can absolutely be personally liable for business debt, especially when it\u2019s fairly easy to prove that you were mingling personal and business purchases<\/a> \u2014 like a flashy watch. Your credit card company might also shut down<\/a> your business\u2019s credit line. Early this year another TikToker made waves<\/a> by promoting one easy trick to increasing your credit limit: by sending invoices<\/a> to your own LLCs and then paying them with a credit card. It looks like your business is getting a lot of income, and it looks like your credit cards are getting high usage, which are both factors used to determine higher credit limits. This is also likely fraud.<\/p>\n

In Australia, a viral financial tip in 2021 advertised as a way to get a quick government loan led to the country\u2019s tax office being defrauded of $4.6 billion<\/a>. The advice, which spread widely on TikTok, instructed people to register a fake business and claim tax refunds on fake business expenses. <\/p>\n

The genre of uncredentialed money gurus<\/a> teaching social media disciples how to get rich quick has exploded in recent years. While you can find some sensible, common sense guidance on money, bad TikTok financial advice runs the gamut from morally questionable to the downright ruinous, whether it\u2019s advising homeowners to get a roommate and charge them the entire monthly mortgage (or more) without disclosing that they\u2019re the landlord \u2014 that\u2019s called \u201chouse hacking\u201d<\/a> \u2014 or maxing out credit cards to buy an Airbnb property you can\u2019t actually afford. \u201cI see a lot of real estate advice that really doesn\u2019t make sense,\u201d says Palmer. \u201cNothing is stopping someone from calling themselves a financial expert, or adding letters after their name on social media.\u201d<\/p>\n

If you\u2019re really unlucky, the advice you uncritically follow from TikTok won\u2019t just drain your bank account or tank your credit score \u2014 it could actually be a crime. It\u2019s unclear what will happen to the money glitch fraudsters. \u201cIt\u2019s really up to Chase if they want to follow up and prosecute fraud that has been done to them,\u201d says Palmer. Check fraud laws vary across jurisdictions, but in some states writing a bad check can be a felony if the amount is large enough (in Texas, for example, it\u2019s $2,500<\/a>).<\/p>\n

With the proliferation of digital banking and personal finance apps, it has become easier to download an app, open an account with a financial institution, and start making some pretty consequential money-related decisions. There\u2019s a sense in which much of our financial transactions and systems don\u2019t quite feel grounded in reality \u2014 money isn\u2019t cold hard cash, it\u2019s a number displayed in an app. It\u2019s easier to overspend<\/a>, and also easier to simply get scammed<\/a>. The FTC reported a record amount of money<\/a> lost to scams last year, with about $10 billion reported lost. Younger people, spending a lot of time online, are actually more likely to fall prey to a scammer<\/a> than baby boomers are.<\/p>\n

\u201cPeople have to be really skeptical when they see these sorts of suggestions online, because they can easily lead you down a path where you are breaking a law without even possibly realizing it,\u201d says Palmer. The \u201cI didn\u2019t know\u201d defense typically doesn\u2019t absolve someone in the eyes of the law, even if it leads to a lesser penalty.<\/p>\n

It\u2019s also true that sometimes \u2014 if you\u2019re already wealthy or in the right, secretive financial circles \u2014 you can get away with fraud<\/a> for many years. You can wade in the muddy waters where the law is untested on whether you\u2019re only minimizing the taxes you owe<\/a> or outright evading them. Tax laws and benefits are already structured to favor capital and the ultra-rich<\/a>, and even if you get into legal trouble, you can hire lawyers to mount a strong challenge in court. But for the vast majority of us, there simply isn\u2019t a shortcut to making a heap of money.<\/p>\n","protected":false},"excerpt":{"rendered":"

Chase called the TikTok trend \u201cfraud, plain and simple.\u201d Who doesn\u2019t want free money? In the world of video games, it\u2019s possible with a simple cheat code \u2014 type \u201cmotherlode\u201d in The Sims, watch a flood of money roll in, redecorate your whole mansion. For a brief, wild moment, a viral TikTok trend suggested that such a shortcut could exist in real life, too.\u00a0 The money \u201chack\u201d worked like this: Over the weekend, news of a \u201cglitch\u201d spread on TikTok claiming that Chase bank was allowing people to withdraw funds from a deposited check right away. People took advantage by writing themselves massive checks, depositing them, and then withdrawing stacks of cash at ATMs. \u201cWe are aware of this incident, and it has been addressed,\u201d a spokesperson for Chase wrote to us over email. \u201cRegardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple.\u201d Chase did not clarify how much money had been withdrawn, or what repercussions there would be for people who had cashed fake checks.\u00a0 Since the weekend bonanza, videos of people who had allegedly scammed Chase seeing negative balances in the tens of thousands have also started popping up. While there are countless videos talking about the so-called \u201cChase money glitch\u201d on TikTok now, many of the top ones are wisely noting that cheating a big bank out of money is not likely to end well. The Chase fraud isn\u2019t particularly sophisticated, and very easy to trace \u2014 especially when you brag about it online.\u00a0 \u201cThis is pretty much traditional check fraud,\u201d says Kimberly Palmer, a personal finance expert at NerdWallet. \u201cThere\u2019s nothing really new about this.\u201d Banks have been reporting soaring rates of check fraud in recent years, which can take different forms. This form, where you write a check you can\u2019t back and take advantage of the money the bank supplies in the interim, is known as \u201ccheck kiting,\u201d but someone could also steal your check and carefully change the amount and recipient. Fake check scams have been on the rise, too: You get mailed a check from someone asking you to deposit it, using a variety of lies and excuses as to why they can\u2019t do it themselves. Then they ask you to send some or all of the money back. It\u2019s a scam because the funds from the check might show up in your account, but it \u201cdoesn\u2019t necessarily mean that it\u2019s already been checked,\u201d says Palmer. By the time the bank verifies that it was a fraudulent check and takes back the money, you\u2019ve already sent the cash back to the scammer. \u201cIf you cash a check that\u2019s fake and then withdraw money, you\u2019re still responsible for the money that you withdrew,\u201d Palmer says. Chase did not respond to a question on whether it was an error in its system that allowed people to withdraw more money than they typically could from a newly deposited check, or whether they were exploiting the ordinary way that a portion of funds is made available when someone deposits a check, known as the \u201cfloat.\u201d Usually, there\u2019s a waiting period for the full balance of a deposited check to appear in your bank account \u2014 it can take a few business days for larger amounts, or if you don\u2019t have an open account with the bank. \u201cSometimes, as a courtesy, the bank does make a portion of the check available right away,\u201d notes Palmer. US banks are also generally required to make at least $225 available by the next business day.\u00a0 It\u2019s worth noting that even when banks make a mistake \u2014 no fraud involved \u2014 customers usually don\u2019t get to keep the money. Financial institutions don\u2019t operate under \u201cno takesy-backsies\u201d rules.\u00a0 The Chase Check Fraud Incident of 2024 is emblematic of a pattern of financial pro-tips and quick hacks offered on social media platforms like TikTok: They\u2019re not smart shortcuts to save money or earn a little more. At best it\u2019s bad advice that won\u2019t improve your finances, and at worst they\u2019re straight-up illegal. One example from last year: a TikToker telling viewers they can easily charge a $100,000 watch on a business credit card and never pay it off. \u201cWith business credit, you are not personally held responsible for that line of credit,\u201d the user @greenthumbgotbands claims in the video. (In a later video, he said it was a joke.) To be clear, even with a limited liability company, or LLC for short, you can absolutely be personally liable for business debt, especially when it\u2019s fairly easy to prove that you were mingling personal and business purchases \u2014 like a flashy watch. Your credit card company might also shut down your business\u2019s credit line. Early this year another TikToker made waves by promoting one easy trick to increasing your credit limit: by sending invoices to your own LLCs and then paying them with a credit card. It looks like your business is getting a lot of income, and it looks like your credit cards are getting high usage, which are both factors used to determine higher credit limits. This is also likely fraud. In Australia, a viral financial tip in 2021 advertised as a way to get a quick government loan led to the country\u2019s tax office being defrauded of $4.6 billion. The advice, which spread widely on TikTok, instructed people to register a fake business and claim tax refunds on fake business expenses.  The genre of uncredentialed money gurus teaching social media disciples how to get rich quick has exploded in recent years. While you can find some sensible, common sense guidance on money, bad TikTok financial advice runs the gamut from morally questionable to the downright ruinous, whether it\u2019s advising homeowners to get a roommate and charge them the entire monthly mortgage (or more) without disclosing that they\u2019re the landlord \u2014 that\u2019s called \u201chouse hacking\u201d \u2014 or maxing out credit cards to buy an Airbnb property you can\u2019t actually afford. \u201cI see a lot of real estate advice that really doesn\u2019t make sense,\u201d says Palmer. \u201cNothing is stopping someone from calling themselves a financial expert, or adding letters after their name on social media.\u201d If you\u2019re really unlucky, the advice you uncritically follow from TikTok won\u2019t just drain your bank account or tank your credit score \u2014 it could actually be a crime. It\u2019s unclear what will happen to the money glitch fraudsters. \u201cIt\u2019s really up to Chase if they want to follow up and prosecute fraud that has been done to them,\u201d says Palmer. Check fraud laws vary across jurisdictions, but in some states writing a bad check can be a felony if the amount is large enough (in Texas, for example, it\u2019s $2,500). With the proliferation of digital banking and personal finance apps, it has become easier to download an app, open an account with a financial institution, and start making some pretty consequential money-related decisions. There\u2019s a sense in which much of our financial transactions and systems don\u2019t quite feel grounded in reality \u2014 money isn\u2019t cold hard cash, it\u2019s a number displayed in an app. It\u2019s easier to overspend, and also easier to simply get scammed. The FTC reported a record amount of money lost to scams last year, with about $10 billion reported lost. Younger people, spending a lot of time online, are actually more likely to fall prey to a scammer than baby boomers are. \u201cPeople have to be really skeptical when they see these sorts of suggestions online, because they can easily lead you down a path where you are breaking a law without even possibly realizing it,\u201d says Palmer. The \u201cI didn\u2019t know\u201d defense typically doesn\u2019t absolve someone in the eyes of the law, even if it leads to a lesser penalty. It\u2019s also true that sometimes \u2014 if you\u2019re already wealthy or in the right, secretive financial circles \u2014 you can get away with fraud for many years. You can wade in the muddy waters where the law is untested on whether you\u2019re only minimizing the taxes you owe or outright evading them. Tax laws and benefits are already structured to favor capital and the ultra-rich, and even if you get into legal trouble, you can hire lawyers to mount a strong challenge in court. But for the vast majority of us, there simply isn\u2019t a shortcut to making a heap of money.<\/p>\n","protected":false},"author":1,"featured_media":2981,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-2979","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-media"],"_links":{"self":[{"href":"http:\/\/mobiledave.me\/index.php\/wp-json\/wp\/v2\/posts\/2979"}],"collection":[{"href":"http:\/\/mobiledave.me\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/mobiledave.me\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/mobiledave.me\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/mobiledave.me\/index.php\/wp-json\/wp\/v2\/comments?post=2979"}],"version-history":[{"count":2,"href":"http:\/\/mobiledave.me\/index.php\/wp-json\/wp\/v2\/posts\/2979\/revisions"}],"predecessor-version":[{"id":2982,"href":"http:\/\/mobiledave.me\/index.php\/wp-json\/wp\/v2\/posts\/2979\/revisions\/2982"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/mobiledave.me\/index.php\/wp-json\/wp\/v2\/media\/2981"}],"wp:attachment":[{"href":"http:\/\/mobiledave.me\/index.php\/wp-json\/wp\/v2\/media?parent=2979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/mobiledave.me\/index.php\/wp-json\/wp\/v2\/categories?post=2979"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/mobiledave.me\/index.php\/wp-json\/wp\/v2\/tags?post=2979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}