Scammers now gain access to free money from Chase ATMs after a ‘glitch’ trend went viral on the social media platform, TikTok.
Now bank giant Chase is claiming this ‘glitch’ trend is outright fraud.
Several viral TikTok videos led some users to believe they could obtain “free” cash from Chase ATMs, but the bank clarified that this was merely a glitch and that those participating were committing fraud.
Over the weekend, videos emerged on TikTok showing individuals depositing checks for large amounts at Chase ATMs and then withdrawing smaller sums, which made them think they had found a loophole.
However, this practice constitutes check fraud, which is illegal.
Chase issued a statement to CNN confirming that the issue has been addressed and cautioned against attempting such actions.
According to a source familiar with the situation, JPMorgan, Chase’s parent company, is currently investigating the matter to assess how many customers were involved and the total amount of money affected.
Chase representatives did not comment on whether regulators are looking into the issue.
The Federal Reserve and the Office of the Comptroller of the Currency also declined to provide comments.
The scam exploits a banking rule that allows check depositors to access a portion of their funds before the checks fully clear.
In the videos, participants wrote checks for inflated amounts and withdrew as much as possible before the checks could bounce.
A Chase spokesperson emphasized, “Depositing a fraudulent check and withdrawing the funds is fraud, plain and simple.”
Some videos showed participants joyfully throwing cash, while others revealed negative balances in their Chase accounts after attempting the “hack.”
This was due to the bank placing holds on their accounts or reversing unauthorized withdrawals.
Financial educator Jim Wang pointed out that many participants faced substantial negative balances.
He advised against spending any funds gained from this “glitch,” stating, “It’s not your money, and when they figure it out, they will want it back.”
His recommendation was to leave the funds untouched and inform the bank instead.
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Also Read: The US Treasury Direct is Now Freezing Customer Accounts
Other Banking News Today
Citibank now fires a whistleblower for ‘underperformance’, after the former employee provided records requested by the OCC.
Citi has filed a countersuit against its former employee, Kathleen Martin, alleging that she was terminated not for refusing to falsify records for the Office of the Comptroller of the Currency (OCC), as she claimed in her lawsuit from May, but rather for being unable to properly fulfill the duties of her role.
Martin, who was let go from her position as Citi’s interim data transformation chair in September 2023 after nearly two years with the bank, had alleged in her lawsuit that she was fired for not agreeing to Chief Operating Officer Anand Selva’s request to conceal information from the OCC that would make the lender “look bad.”
In a revised lawsuit, Kathleen Martin has accused Citi’s Chief Operating Officer Anand Selva of intentionally deceiving the bank by wanting to misrepresent Citi’s compliance metrics to the Office of the Comptroller of the Currency (OCC).
Martin claims Selva sought to conceal information from the OCC that would have made the bank “look bad.”
However, Citi maintains that Martin’s termination in September 2023 was not due to her refusal to falsify records, but rather because she lacked the necessary “leadership and engagement skills” to effectively execute the role of interim Data Transformation Chair, which she had been appointed to after the previous chair, Rob Casper, departed the company.
Citi asserts that during Martin’s interviews and assessment for the interim role, it was identified that she needed to improve in areas like her “dogmatic nature, lack of innovation and lack of experience driving the execution of complex change across Citi.”
Once Casper left, Citi’s senior leadership, including COO Selva, determined that Martin could not successfully fulfill the demands of the interim chair position.
According to Citi, COO Anand Selva tried to help the plaintiff, Kathleen Martin, improve her performance in the interim Data Transformation Chair role.
Selva allegedly set up one-on-one meetings and working groups to facilitate better collaboration and working relationships with stakeholders.
Selva’s HR team also provided Martin with a senior mentor to support her development.
In May 2023, Citi leadership discussed a plan to improve Martin’s performance.
In July, Selva conveyed Martin’s mid-year review before she raised any concerns about his behavior.
Soon after, Martin contacted HR and expressed fears about her job security.
Citi claims that Martin “felt her position was at risk,” but the bank asserts that internal documents showed she “exceeded expectations” and that CEO Jane Fraser had commended her for her “gravitas” and ability to build “strong relationships” at the bank.
However, Citi says Martin failed to heed the feedback provided, and she was ultimately removed from the Data Transformation Chair role because she lacked the “executive level relationships” and leadership needed to successfully execute the data transformation efforts.
Citi says the data transformation work was too critical for the bank to tolerate Martin’s underperformance.
Citi denies Martin’s claims that she protested the reporting of a key metric accurately or that Selva objected to it.
The bank says Selva and Martin met in September 2023 to discuss reporting certain metrics using red, amber, and green scales.
Also Read: A Massive US Bank is Now Closing Credit Cards
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