Buzz
A viral incident dubbed the "Chase Bank glitch" over the weekend turned out to be nothing more than traditional check fraud.
TikTok videos fueled the misconception that individuals could obtain "free" money from Chase ATMs by depositing fraudulent personal checks and withdrawing funds before the checks cleared. Chase has clarified that exploiting banking delays to withdraw unearned money is impossible and has cautioned customers against such practices.
This serves as yet another reminder of a truth I’ll always emphasize: TikTok is a constant source of poor financial guidance. Here’s an explanation of how the "glitch" operated and tips to steer clear of similar scams.
What really happened with the Chase Bank glitch?
Over the weekend, I found myself scrolling through TikTok more than usual, witnessing individuals brazenly engage in check fraud while claiming to exploit a banking "bug" or "glitch." In reality, this was just a standard banking procedure that allows depositors access to a portion of their funds before the check fully clears.
During this weekend’s chaos, individuals filmed themselves writing checks for outrageous sums, depositing them into their accounts, and withdrawing as much cash as possible before the checks could bounce.
Chase stated in a release that they have addressed the system delay and emphasized that the trend was a clear case of check fraud. “No matter what you see online," Chase’s statement clarified, "depositing a fake check and withdrawing funds is unequivocally fraud.”
Those who exploited the delay to withdraw cash won’t be able to keep the money without consequences. Many have had their accounts frozen and now show negative balances. Since the funds were acquired fraudulently, the bank will demand repayment—and retaining the money would constitute a criminal act.
How to identify misleading financial advice on TikTok
While you might not have been tricked by the recent viral check fraud scheme, scams exist for everyone, and recognizing them is crucial. As I’ve emphasized before, before taking financial advice from a social media influencer, consider these three key questions about the person offering the advice.
What are their qualifications? Becoming a “guru” doesn’t require meeting fiduciary standards. Look for credentials such as CPA (certified public accountant) or RIA (registered investment adviser). If they come from wealth and have a track record of chasing influencer fame, approach their advice with caution.
Does this seem too good to be true? Steer clear of “get rich quick” schemes. If the advice were genuinely effective, why would they share it with millions? If you can’t consult a financial advisor, at least conduct your own research before trusting an Instagram post promoting a so-called foolproof investment strategy.
Is this person trying to sell you something? This is the most critical factor when evaluating financial advice. Be cautious about purchasing specific products or stocks, especially when recommended by a stranger on TikTok. Remember, no stranger is genuinely concerned about your financial well-being if they stand to profit from selling you something.
