Finance

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

Published

2 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

Biden administration forgives $4.5 million in student debt for 60,000 borrowers

Published

14 hours ago

October 18, 2024

Business Finance News

Borrowers who serve in the public service sector and government are eligible for this forgiveness. (iStock )

Another 60,000 student loan borrowers will receive student loan relief in the coming weeks. The Biden Administration announced $4.5 billion in relief for public service workers such as nurses, teachers and social workers.

The relief comes as a fix to the original Public Service Loan Forgiveness (PSLF) program. The program was initially signed into law by George W. Bush in 2007 to give non-profit and government employees loan forgiveness after 10 years in the workforce.

“Before President Biden and Vice President Harris entered the White House, the Public Service Loan Forgiveness program was so riddled by dysfunction that just 7,000 Americans ever qualified,” U.S. Secretary of Education Miguel Cardona said in the Education Department’s press release.

The new relief intends to pay down the loans of borrowers who were originally denied acceptance or who have still not received relief after making the 120 required monthly payments.

“Today’s announcement comes on top of the significant progress we’ve made for students and borrowers over the past three years,” President Joe Biden said in a statement.

“That includes approving debt cancelation for nearly 5 million Americans across all our various debt relief actions; providing the largest increases to the maximum Pell Grant award in over a decade; fixing Income-Driven Repayment so borrowers get the relief they earned; and holding colleges accountable for taking advantage of students and families,” Biden said.

If you have private student loans, federal relief doesn’t apply to you, unfortunately. If you’re looking to lower monthly payments and ease the burden of student loan debt, consider refinancing. See what your interest rate could be via the online marketplace Credible.

IS COLLEGE DEBT WORTH IT?

Resources available for students affected by the recent hurricanes

Hurricanes Helene and Milton have wreaked havoc on many communities in the south, causing serious physical damage and severely disrupting educational services. In response, the U.S. Department of Education released resources to help students and institutions of higher education recover.

“I have directed our team at the Department of Education to leverage every possible resource available to meet the needs of impacted students, families and school communities,” Cardona said.

The new resources include support for recovery needs like mental health care for students and educators, technical assistance and flexible financial aid policies at affected universities. Many students are also automatically being enrolled in natural disaster forbearance, so they don’t have to worry about their loans while recovering from the hurricanes.

Most of these resources will be concentrated on Georgia, which has seen a substantial amount of damage. The Readiness and Emergency Management for Schools Technical Assistance Center is a specific program Georgians have access to. It helps education agencies manage their safety, security and emergency management programs.

The Early Childhood Technical Assistance Center is another option that offers resources and links from organizations that help families and children, including those with disabilities, cope with disasters.

If you don’t have federal student loans that qualify for assistance, refinancing could cut your monthly payment. You can use Credible to compare student loan refinancing rates from multiple private lenders all at once without affecting your credit score.

STUDENT LOAN DEBT HAS INCREASED BY 430% SINCE 2003 – HERE’S HOW TO LOWER YOUR DEBT

$70 million in federal funding going to schools for additional mental health services

Along with aid to student loan borrowers and students affected by natural disasters, the Biden administration is also directing federal funding towards mental health services in K-12 schools. The administration announced a $70 million investment that will expand students’ access to mental health support.

“We know that students are more likely to access mental health support if it’s offered in schools, and our educators and school communities are on the front lines when a student is struggling,” Cardona said in the announcement.

“The need for mental health support in our schools remains high,” Cardona said. “Today’s announcement of an additional $70 million will allow more institutions and schools to train and hire mental health professionals – especially in underserved communities – ensuring that every student has access to the care they need to thrive.”

The new funding, combined with the Bipartisan Safer Communities Act (BSCA) investments, will go to 333 grantees across 48 states. It will help communities train and hire 4,000 more mental health professionals across the country.

To see what you’d pay on a private student loan, you can visit Credible today to view a rates table that allows you to compare fixed and variable rates from multiple lenders.

LESS THAN A THIRD OF AMERICANS APPROVE OF HOW BIDEN HAS HANDLED STUDENT LOAN DEBT

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