close
close

first Drop

Com TW NOw News 2024

Chase warns against using system flaw to steal money: It’s ‘fraud, pure and simple’ | US news
news

Chase warns against using system flaw to steal money: It’s ‘fraud, pure and simple’ | US news

US banking giant Chase has made it clear that exploiting a system flaw to extort money was simply fraud, despite it becoming a TikTok trend.

Chase Bank’s warning Monday came in response to posts going viral on social media in which customers allegedly tried to withdraw more money than they had in their accounts by taking advantage of a slowdown in the banking system.

According to People, users claimed they knowingly deposited counterfeit checks, often for large amounts, and then immediately withdrew the money from Chase ATMs before the check could bounce.

Chase said in a statement that it had resolved the issue and issued a stern warning that it was, in fact, simple check fraud.

“We are aware of this incident and it has been addressed,” Chase said in a statement. “Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is simply fraud.”

The number of Chase customers who tried this isn’t immediately known.

One video posted to social media shows alleged participants shouting with joy and throwing money into the air. However, other videos show alleged participants later becoming angry after seeing huge negative balances in their bank accounts after the bogus checks finally bounced, but their withdrawals of money were still accounted for.

Social media users who saw the viral trend take off often responded with humorous comments.

“Check kiting. It’s called check kiting. And it’s been around since the invention of… checks,” Cornell University law professor Dan Awrey wrote on X.