In September, TikTok users were posting videos of the Chase bank ‘glitch’; a way to get an infinite supply of cash without any repercussions. However, the ‘glitch’ was actually cheque fraud, and those who tried the ‘infinite money hack’ were left with a negative bank balance, owing Chase hundreds of thousands of pounds and facing legal repercussions.
What is the Chase Bank ‘glitch’?
Those attempting the Chase bank ‘glitch’ filmed themselves writing cheques for hundreds of thousands of dollars, and paying them in at Chase bank’s ATMs. Users were then able to access the amount written on the cheque immediately, and filmed their new bank balance or withdrew the cash from their account. Some threw it into the air in celebration. They posted the video online, and after seeing the ‘glitch’, more users gave it a try.
Like many viral trends, the Chase bank ‘glitch’ is difficult to find the origin of. Whether this began as a post on X or a different social media site, it really found an audience on TikTok. Videos of the Chase bank ‘glitch’ dominated the platform, and every video, like and comment pushed the trend further.
Why this ‘glitch’ was actually cheque fraud
What those attempting to exploit the Chase bank ‘glitch’ failed to realise was that their new found wealth was only temporary; they had actually committed cheque fraud against themselves.
When a cheque is deposited with a bank, there are three stages that it goes through. First it is ‘paid in’, which means it has been deposited at the bank, and the bank has begun the process of collecting the sum from the sender’s account.
When this is completed, the cheque is now ‘cleared’ and the money is available in the recipient’s account. It’s at this stage where those trying Chase bank ‘glitch’ saw the money in their account, and were able to make purchases and withdrawals.
The final stage is ‘verification’, where the bank confirms that the cheque is legitimate. Ultimately, the cheques that people deposited as part of the Chase bank ‘glitch’ were quickly and easily determined to be fraudulent. The bank then reserved the deposit, and the payments were removed from the recipient’s account.
Knowingly depositing a fake cheque is cheque fraud, and perpetrators found their bank accounts frozen, in thousands of pounds worth of debt, and referred to law enforcement by the bank.
Why did the Chase Bank ‘glitch’ happen?
Cheques have been falling out of fashion for years, and are now predominantly used by those over the age of 65. Banks in the UK like Barclays and Natwest no longer issue them as standard when you open an account, and although you can request them, it’s easier than ever to send money using an app. As such, the majority of young people are not used to using cheques.
Young people are also in a radically different financial situation than previous generations. Whilst some millennials and Gen Z are generating wealth, the pay gap between rich and poor is widening. Around 55% of people between the ages of 18 and 34 are not completely financially independent from their parents, and those between the ages of 18 and 24 are more likely to live with their parents than in the past.
It’s difficult to say why this particular trend went viral in the way that it did, but it’s possible that the financial difficulties young people are experiencing, coupled with a lack of education around cheques were contributing factors.
Still taking financial advice from TikTok?
Finance influencers, or finfluencers, are incredibly popular on social media, as are get rich quick schemes. But apps like TikTok have no vetting process; anyone can call themselves a finance influencer and start giving out advice. Sometimes you might be receiving sound financial planning…and other times, you might be encouraged to commit cheque fraud.
If you’re looking for some support when it comes to your finances, we’d recommend closing the social media apps, and working with a qualified financial adviser. Otherwise, you could be facing debt, and an arrest warrant.
Wanting to work with a financial advisor? Find out how to choose one here
