Chase Is Suing More Customers for Stealing Money Last Year Using the Viral TikTok ‘Money Hack’
Remember all those viral “money hacks” on TikTok that helped some Chase customers withdraw money fraudulently from ATMs? Chase is pursuing legal action against more customers who were involved, so they may soon have to repay any money that was illegally obtained.
Last October, a temporary glitch in Chase Bank’s security allowed people to write checks to themselves and deposit them at ATMs, withdrawing the funds before the bank could identify the error. Typically, you can’t withdraw money until the bank verifies the check is legit, which can take a few days. This glitch gave access to funds almost instantly.
When Chase caught wind of the hack, it fixed the glitch and withdrew any fraudulently obtained funds from customers’ accounts, leaving some with negative balances.
Shortly after, the bank began filing lawsuits against some customers. Chase is now asking state courts to require more customers who committed fraud to pay back any remaining funds they illegally withdrew and to cover any attorney fees, according to the court petitions.
Check fraud is illegal and can result in serious consequences. Here’s what happened and how you can avoid check fraud and its financial repercussions.
Potential consequences if you don’t return the money
Chase’s system error isn’t the bank’s cost to cover. It’s your responsibility to pay back money.
“The bank doesn’t need permission to recover funds deposited in error, and it will remove the funds as soon as the error is realized,” said Alaina Fingal, a member of CNET’s Expert Review Board and founder of The Organized Money.
And that’s exactly what Chase is doing.
Customers with negative bank account balances will need to pay back the money they withdrew, or they could face legal action. Every deposit made to the bank, including paychecks, will go toward paying down the negative balance. Avoiding the bank or closing the account will only make it worse. Chase can still get a court order to force you to repay the amount, and you could go to prison.
What to do if you still owe money from the Chase glitch
Whether you thought you had some of the money in your account or you knowingly caught onto the viral scheme, don’t assume it’s free cash up for grabs.
“It’s tempting to try to keep the money, however banks have systems in place to catch these types of errors,” said Fingal.
Even if you didn’t realize the error, the bank has the right to recover the funds from you, Fingal said. You should return the funds as soon as possible. If you spent the money on products, return the items as soon as possible to get the money and pay it back. If you can’t get the money back, contact the bank for options for repayment. Keeping the money and closing your account can lead to worse financial consequences.
Read more: Watch Out for These Devious Banking Scams
Monitor your bank activity daily
Other fraud incidents and scams can happen that may come as a surprise to you. Monitoring your bank accounts daily lets you catch errors and avoid getting caught up in one of these glitches, Fingal said.
Set up push notifications, or automated text messages or emails, to alert you of deposits and withdrawals. If you spot an error, contact your bank’s customer service right away.