Chase Bank Glitch: How a Popular Scam Could Land You Behind Bars

• The Chase Bank glitch scam involved depositing fake checks and withdrawing funds before they cleared, but Chase Bank has labeled it as clear fraud.
• This scam, revived by social media, mirrors classic check fraud techniques like check kiting and has drawn comparisons to historical scams.
• Legal penalties for such fraud can be severe, but individuals with clean records and smaller amounts may receive some leniency if they handle the situation properly.

Chase Bank recently became the subject of a viral craze concerning a rumored bug that promised easy money. This fad, which gained hold on social media, implied that users might take advantage of a bank loophole by depositing bogus checks and taking the monies before they cleared. However, Chase Bank has categorically denied these allegations, claiming that such practices are clearly fraudulent.

Here’s how the scam was supposed to work: people would write fraudulent cheques and deposit them into their accounts at ATMs. Although banks usually require a clearing period before a check is fully processed, some monies become available fast. The scam involved withdrawing this easily available cash with the expectation that the bank would not catch on or would absorb the losses.

For many who attempted this so-called “easy-money hack,” reality struck when Chase Bank began to reverse the withdrawals, frequently blaming the changes on ATM mistakes. Unfortunately, the individuals involved were held accountable for returning the plundered monies.

This Chase Bank incident is only the most recent example of a “get rich quick” scam that has reappeared thanks to social media. This type of financial deceit is not new; it has existed for ages but has recently been given a modern twist via online platforms. For example, during tax season, several TikTok influencers misled viewers about unlawful tax evasion strategies, such as manipulating IRS documents or using corporate formations like S-corps to avoid taxes. Similarly, several individuals proposed fraudulent uses of PPP loans.

Financial experts swiftly condemned the Chase Bank malfunction as an example of classic check fraud, a crime that has existed for a long time. Check kiting, for example, is the practice of depositing a check from one bank into another without adequate cash and then withdrawing and re-depositing the funds during the time it takes for the check to clear. This technique has been the focus of numerous legal cases throughout the years.

The Chase Bank tendency has also been linked to the notorious check fraud dramatized in the film Catch Me If You Can, starring Leonardo DiCaprio as Frank Abagnale Jr., a real-life con artist. This comparison shows how modern scams resemble previous fraud scams.

The legal consequences for engaging in check fraud might vary greatly based on the state and amount involved. In New York, for example, the punishments vary from six months to twenty-five years in jail. However, Adam H. Rosenblum, a legal expert, observes that those with clean records who are involved in smaller amounts, less than $3,000, may receive some leniency. He suggests that carefully handling the problem and speaking with an attorney can often reduce the legal ramifications.

In conclusion, while the Chase Bank malfunction trend appears to be a modern variation on an old swindle, it highlights a timeless truth: financial fraud, regardless of its form or technology, is a serious crime with serious consequences.