What is the deal with Chase bank ‘glitch’ on TikTok? Consequences of trying ‘hack’ and the dangers

• Social media users went wild for the ‘Chase bank glitch’.
• Taking advantage of a fault with ATM machines, people thought they were getting free money.
• But the loophole has been fixed and customers have been left thousands of dollars in debt.

A fool and his money are easily parted, so goes the old saying, but many people were discovering this weekend that the same is not true for banks. TikTok users thought they had discovered a ‘glitch’ to give them free cash from Chase Bank in the United States, however life is not like a Grand Theft Auto game and now some of those who attempted the ‘hack’ have been left thousands of dollars in debt. 

If you grew up playing video games on consoles at home in the 1990s and 2000s, you may remember searching out cheat codes and using them to get ‘infinite money’ or ‘extra lives’. And when people started sharing the so-called Chase Bank ‘glitch’ on social media, it may have sounded like a real life version of these cheat codes - but unfortunately real life doesn’t work the same as a computer game. 

For those who tried out the ‘glitch’ they have been waking up to a nasty surprise as they stare down the barrel of real life consequences after jumping on the trend. Here’s all you need to know: 

What is the ‘Chase bank glitch’? 

TikTok users across the pond have been going wild for the so-called ‘Chase bank glitch’. A video shared on X (formerly Twitter) on Saturday (31 August) showing people lining up outside a branch in New York City. 

The clip was captioned: “People are currently lined up outside a Chase bank in New York trying to do the new viral glitch to get free money.” The basic gist of the “glitch” is that people were exploiting an error with ATM machines allowing them to withdraw money after depositing a fake check or after applying for a large loan. 

New York Post reports that the ‘glitch’ looked “an awful lot like check fraud”, which is described as one of the “oldest scams in the book”. Videos encouraging people to take advantage of the “glitch” took off online and saw people try to take advantage of it, but they soon felt the real world consequences. 

Has the ‘glitch’ been fixed? 

A spokesperson for Chase bank told the NY Post that the ‘glitch’ has been fixed and warned customers to be sceptical if something sounds too good to be true - as it likely is. 

“We are aware of this incident, and it has been addressed. Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple,” they added. 

What has happened to people who tried the ‘glitch’? 

In one video shared on TikTok, a distraught user shows his followers that he is now $40,000 (approx £30,000) in debt. Sharing a screenshot of his bank account, the emotional man says “look at my account”. 

Jim Wang, a financial educator, warned that people who “took advantage” of the “glitch” could face serious consequences. He told the NY Post: “So what people discovered over the last few days was that Chase was having problems with their ATMs. They were able to deposit checks and get the balances and were able to withdraw them. 

Wang continued: “Chase was pretty on top of it, within a day it was all fixed and the people that were doing this were seeing big holds in their accounts or huge negative balances In the case of this ‘glitch,’ it was just check fraud. You’re going to get in huge trouble if you do something like this.”

This is not the first time a “glitch” like this has been spotted, with similar incidents happening with Cash App and DoorDash in the past. In both cases, users who had attempted to exploit it were left responsible for the huge amount of debt they had now incurred. 

What is punishment for check fraud? 

Carrying out check fraud (or cheque fraud as it is known here in the UK) is illegal and carries a range of punishments. According to SQN Banking Systems this ranges from fines all the way up to custodial sentences. 

Perps could face fines of a few hundred or even thousand dollars for misdemeanour offences but for felonies it could be in the tens of thousands of dollars. In extreme cases, such as Edward Rostohar, the former CEO of CBS Employees Federal Credit Union, who stole $40 million dollars, the fines could reach as high as over $1 million dollars. 

For misdemeanours, perpetrators could face up to a year in a local jail. But if the offence passes the threshold to be considered a felony, you could be looking at even longer in prison. 

Should social media apps act quicker to prevent people from sharing “tips” like the so-called “Chase bank glitch”. Share your thoughts with our tech writer by emailing: [email protected].