Chase Bank said it is investigating the cases of individuals who may have been involved in an epidemic of online check fraud “glitches” and has reported them to law enforcement authorities.
Millions of people on social media reacted last weekend to a post suggesting that a bank error was allowing unlimited cash to be withdrawn from ATMs.
In fact, the meme encouraged users to commit check fraud by depositing a fake check for the desired amount and then asking for cash they did not have.
Within 24 hours of the suspicious activity being discovered, users reported that their bank accounts had been blocked.
“As with any fraud-related matter, we investigate internally and, if necessary, refer individuals to law enforcement,” a Chase spokesperson said in a statement. “Depositing fraudulent checks and withdrawing funds from your account is fraud, plain and simple, regardless of what you may have seen online.”
The latest developments First reported TThe Wall Street Journalsaid the bank was investigating “thousands” of cases, though NBC News could not independently verify that figure.
The paper also reported that there had been a technical error that allowed customers to withdraw the full amount of funds requested in a check (usually only a partial withdrawal is possible) before the check cleared.
A source familiar with the matter confirmed there was an error that was eventually corrected.
It's unclear how the “glitch” trend started, but by last Saturday, the meme had exploded on TikTok, with some people making videos of themselves boasting about their newfound wealth.
Criminal laws regarding the severity of penalties for check fraud vary by state. In California, misdemeanor check fraud is punishable by one year in jail and a fine. In New York, misdemeanor check fraud is punishable by up to three months in jail and a fine.
However, charges could be more severe depending on the amount of money involved in the case and an individual's criminal history.
