Recently, there has been a rumor circulating on social media platforms, particularly on TikTok, about a method that supposedly allows customers to withdraw large amounts of cash for “free” from Chase Bank’s ATMs. However, Chase Bank has clarified that this method is not a result of exploiting a “loophole,” but rather constitutes a criminal act of check fraud.
The so-called “loophole” operates in the following manner: an individual writes a large-value check to themselves, deposits the check into a Chase Bank ATM, and then withdraws cash from the bank before the check is actually cashed.
As a consequence of this scheme, individuals have fraudulently taken cash that does not rightfully belong to them by exploiting this process.
The strategy revolves around a standard practice in the banking industry that allows check depositors to access a portion of the funds before the check is fully cleared. In the videos circulating online, participants write sizable checks and withdraw as much cash as possible before the checks bounce.
It is important to note that this is not a system “loophole” but a form of check fraud, constituting a criminal offense.
Chase Bank stated in a statement to CNN that this issue has been “resolved” and cautioned individuals against attempting it.
A spokesperson from Chase Bank emphasized, “No matter what you see online, depositing a fraudulent check and withdrawing funds from your account is fraud, plain and simple.”
Chase Bank warned that individuals engaging in this check fraud scheme will be held responsible for all the money they withdrew if the deposited checks bounce. The bank may freeze their accounts or deduct the stolen cash from their accounts, potentially resulting in negative balances.
Chase Bank has not disclosed the extent of this activity or their next steps in response to it.
A source informed CNN that JPMorgan Chase, the parent company of Chase Bank, is closely examining the situation. The source mentioned that the bank is still determining how many Chase customers are involved in this incident and the amount of money at stake.