Chase ATM “Glitch” Turns Out to Be Check Fraud, Bank Warns Customers
Recent viral TikTok videos led some Chase customers to believe they had found a way to withdraw “free” cash from ATMs. However, what appeared to be a loophole was actually a case of check fraud, according to the bank. Over the weekend, users posted videos showing large check deposits at Chase ATMs followed by withdrawals of smaller but significant amounts, thinking they had uncovered a system glitch.
Chase quickly clarified that these actions constituted fraud, stating that the issue had “been addressed.” In a statement to CNN, the bank warned customers against attempting the scheme, emphasizing the legal consequences.
JPMorgan, Chase’s parent company, is conducting a review of the incident, investigating how many customers were involved and how much money was fraudulently withdrawn. A source close to the situation told CNN that the bank is still determining the full scope of the issue. Chase also confirmed that the matter is under investigation, though details about law enforcement involvement remain unclear.
The viral trend exploited a banking standard that allows check depositors partial access to funds before the check fully clears. Participants deposited checks for large sums and withdrew as much as possible before the checks bounced, believing they were cashing in on a glitch.
“Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple,” a Chase spokesperson said.
While some videos depicted participants joyously throwing money into the air, others showed Chase customers discovering negative balances in their accounts after the bank placed holds or reversed the unauthorized withdrawals.
Financial expert Jim Wang urged caution, explaining, “Bank errors in your favor are almost never in your favor. In the case of this ‘glitch,’ it was just check fraud. The bank will eventually reclaim the money.”
Wang advised those involved to leave the funds untouched and notify the bank. “It’s not your money, and when they figure it out, they will want it back,” he warned.