J.P. Morgan Chase reportedly plans to share with police the information it has about people who took advantage of a so-called “glitch” that was promoted by TikTok users late last week.
Chase Bank suffered a technical error that allowed customers to immediately withdraw the full amount from checks they deposited at ATMs, rather than the smaller portion that the bank normally allows, The Wall Street Journal reported Friday (Sept. 6).
The glitch became a TikTok craze and lasted a few days, during which time thousands of people exploited the error by depositing bad checks and withdrawing money from ATMs, according to the report, citing an estimate by the bank.
“As with any fraud-related issue, we review internally and refer to law enforcement as appropriate,” a Chase spokesman said, per the report. “Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple.”
Chase plans to freeze accounts in which it finds instances of fraud and share surveillance footage and other information about those who allegedly committed fraud with authorities, the report said.
When the “glitch” was appearing on the social media platform, TikTok slowed promotion of the trend and added a warning to some videos, saying that “participating in this activity could result in you or others getting hurt,” according to the report.
Check fraud remains a persistent threat, with criminals continuously adapting their tactics and using check washing, counterfeiting and other means to exploit vulnerabilities in traditional payment systems, PYMNTS reported in April.
The Financial Crimes Enforcement Network (FinCEN) warned banks in February that there has been a nationwide surge in check fraud.
The organization said that Bank Secrecy Act reporting for check fraud has risen substantially in the last three years, that criminals are stealing checks from the mail, and that they are also using the personally identifiable information they find on that stolen mail for future frauds.
The United States Postal Inspection Service last year reported a “check washing” trend in which criminals steal checks from mailboxes, alter the payee name and deposit them. In some cases, they use copiers or scanners to make copies of the checks.
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