According to the article, several viral TikTok videos had some people believing they could get “free” cash from Chase ATMs. But it was just a glitch – and those customers were committing fraud, according to the bank.

Recently, videos appeared on the app showing people depositing checks for large sums of money at Chase ATMs and then making a withdrawal for a smaller yet substantial amount, leading them to believe they had discovered a bug and were hitting the jackpot.

The problem is that this is just a form of check fraud, a criminal offense. Chase said in a statement that the issue has “been addressed” and warned people not to try it.

JPMorgan, the bank’s parent company, is carefully reviewing the situation, a person familiar with the matter told the media. The bank is still determining how many Chase customers and how much money was involved in the incident, the source said.

A Chase representative said the bank is “investigating the incidents,” confirming a report from the Wall Street Journal. But the representative declined to share any information regarding the extent to which law enforcement agencies were involved.

The Federal Reserve declined to comment, and a spokesperson for the Office of the Comptroller of the Currency said the agency does not comment on specific banks or supervisory activities.

The Ruse

The ruse centers on a banking standard that enables check depositors to have access to a portion of their money before the full total of the check clears. In the case of the viral videos, participants wrote checks for obscene amounts of money and then withdrew as much as they could before the check could bounce.

“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.

One video shows participants throwing dollar bills in the air with glee, while other posts showed negative balances in their Chase accounts after trying the “hack.” But that was the bank putting holds on their accounts or deducting the stolen cash from their accounts, according to Jim Wang, a financial educator.

“It’s Not Your Money”

“The people that were doing this were seeing big holes in their accounts or huge negative balances,” Wang said on Instagram. “Bank errors in your favor are almost never in your favor. In the case of this ‘glitch,’ it was just check fraud.”

His advice? “It’s not your money, and when they figure it out, they will want it back. Do not spend it, do not move it, just leave it alone and tell the bank,” Wang said.

Discussion Questions

1. Define fraud.

Fraud is defined by the following elements: (a) a false statement of fact; (b) made with knowledge of its falsity or reckless indifference as to its truth; (c) made with the intent that the listener rely on the false statement; (d) the listener in fact relies on the false statement; and (e) the listener is harmed as a result (economically, physically, or both).

2. Who is committing fraud in this case—the individuals who post the videos to influence others, or those who act in response to the videos?

Based on the definition of fraud included in response to Article 2, Discussion Question 1, both the individuals who post the videos to influence others and those who act in response to the videos commit fraud. Both words and actions can constitute fraud.

3. Recall from Article 1 (“Tiktok Has 15 Minutes to Fight for Its Life”) of this newsletter that the federal government is currently a ban on Tiktok within the U.S. Does Article 2 (“Check Fraud at Chase ATMs”) of this newsletter influence your opinion regarding such a ban? If so, in what way(s)?

This is an opinion question, so student responses may vary. In your author’s opinion, banning Tiktok within the U.S. should be based predominantly, if not exclusively, on whether Tiktok represents a substantial threat to U.S. national security. The fact that a few individuals abuse Tiktok should not lead to a wholesale ban on the social network medium within the United States.