Finance

Chase Bank says it is aware of viral ‘glitch’ inviting people to commit check fraud

Published

8 months ago

September 3, 2024

Business Finance News

The Chase bank logo above ATMs, taken in Manhattan.

Michael Kappeler | Picture Alliance | Getty Images

Chase Bank is urging its customers not to commit check fraud.

The bank’s plea comes after this weekend a viral trend took over TikTok and X, with users being told that there was a systemwide glitch and that, if they deposited false checks in an ATM and withdrew that money soon afterward, they would be able to cheat the system and take out a large sum of cash before the check bounced.

The only problem? This is not a “glitch” — it’s a check fraud scheme and those who participate will be on the hook for all the money they withdrew once the check bounces.

Although some on TikTok called the scheme a “glitch,” Chase reminded its customers that this “glitch” is actually an invitation to commit fraud.

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

NBC News has not verified if anyone actually committed the crime as part of the viral trend. However, videos online purported to show people successfully withdrawing cash from an ATM after depositing a fraudulent check into their own bank account — before others quickly pointed out that what they were doing was a crime.

While conversation about the “glitch” has taken over TikTok, it appears the first mention of it was on X, when a user shared an excessive balance of more than $80,000 in his account on Thursday, according to meme database Know Your Meme.

One video appeared to show lines forming outside of a Chase branch in New York suggesting people were flocking to the bank to “get free money.” Just as quickly as the trend took off, however, people were soon posting screenshots of massive negative balances and holds on their Chase accounts as a result of allegedly trying to withdraw the money.

“I don’t know what these people think writing bad checks is, but I don’t know why they thought this was a glitch,” one TikTok user said. “Definitely don’t do it.”

Fake check deposits are a common form of check fraud and are not new, although the chaos of this weekend saw many online discover the tactic for the first time — and mistaking it for a money hack.

Large checks deposited digitally are often placed on hold while the bank reviews their authenticity, but some ATMs allow customers to access a portion of the newly deposited funds immediately. This allows users to quickly withdraw the money before their check clears or bounces.

Fraudsters often approach this by opening bank accounts with fake identities, creating and depositing counterfeit checks from seemingly legitimate sources, then abandoning the account and leaving it with a negative balance.

Another common trick involves a scammer pretending that they sent a check for a greater amount than they meant to, hoping that the recipient is willing to deposit the check and transfer the excess money, which would ultimately leave the victim out of their own funds after the check bounces.

But in this case, people online seem to be simply committing check fraud against themselves — making it relatively easy for a bank to catch on and hold them accountable.

In the days after the Chase “glitch” gained traction, other TikTokers began dunking on those who had tried it, with some joking about waking up with enormous negative balances and others warning users that they had no chance of outsmarting the multinational banking institution.

“Chase Bank glitch? No, that’s called fraud,” one TikTok user said in a video that accrued more than 1 million likes in one day. “You went to the bank and took $50,000 that didn’t belong to you. That’s not a life hack, that’s called robbery. You’re going to jail. Prison actually.”

Finance

More Americans buy groceries with buy now, pay later loans

Published

3 hours ago

April 26, 2025

Business Finance News

People shop for produce at a Walmart in Rosemead, California, on April 11, 2025.

Frederic J. Brown | Afp | Getty Images

A growing number of Americans are using buy now, pay later loans to buy groceries, and more people are paying those bills late, according to new Lending Tree data released Friday.

The figures are the latest indicator that some consumers are cracking under the pressure of an uncertain economy and are having trouble affording essentials such as groceries as they contend with persistent inflation, high interest rates and concerns around tariffs.

In a survey conducted April 2-3 of 2,000 U.S. consumers ages 18 to 79, around half reported having used buy now, pay later services. Of those consumers, 25% of respondents said they were using BNPL loans to buy groceries, up from 14% in 2024 and 21% in 2023, the firm said.

Meanwhile, 41% of respondents said they made a late payment on a BNPL loan in the past year, up from 34% in the year prior, the survey found.

Lending Tree’s chief consumer finance analyst, Matt Schulz, said that of those respondents who said they paid a BNPL bill late, most said it was by no more than a week or so.

“A lot of people are struggling and looking for ways to extend their budget,” Schulz said. “Inflation is still a problem. Interest rates are still really high. There’s a lot of uncertainty around tariffs and other economic issues, and it’s all going to add up to a lot of people looking for ways to extend their budget however they can.”

“For an awful lot of people, that’s going to mean leaning on buy now, pay later loans, for better or for worse,” he said.

He stopped short of calling the results a recession indicator but said conditions are expected to decline further before they get better.

“I do think it’s going to get worse, at least in the short term,” said Schulz. “I don’t know that there’s a whole lot of reason to expect these numbers to get better in the near term.”

The loans, which allow consumers to split up purchases into several smaller payments, are a popular alternative to credit cards because they often don’t charge interest. But consumers can see high fees if they pay late, and they can run into problems if they stack up multiple loans. In Lending Tree’s survey, 60% of BNPL users said they’ve had multiple loans at once, with nearly a fourth saying they have held three or more at once.

“It’s just really important for people to be cautious when they use these things, because even though they can be a really good interest-free tool to help you kind of make it from one paycheck to the next, there’s also a lot of risk in mismanaging it,” said Schulz. “So people should tread lightly.”

Lending Tree’s findings come after Billboard revealed that about 60% of general admission Coachella attendees funded their concert tickets with buy now, pay later loans, sparking a debate on the state of the economy and how consumers are using debt to keep up their lifestyles. A recent announcement from DoorDash that it would begin accepting BNPL financing from Klarna for food deliveries led to widespread mockery and jokes that Americans were struggling so much that they were now being forced to finance cheeseburgers and burritos.

Over the last few years, consumers have held up relatively well, even in the face of persistent inflation and high interest rates, because the job market was strong and wage growth had kept up with inflation — at least for some workers.

Earlier this year, however, large companies including Walmart and Delta Airlines began warning that the dynamic had begun to shift and they were seeing cracks in demand, which was leading to worse-than-expected sales forecasts.