Discover how the latest TikTok trend led users to commit a form of check fraud known as check kiting.
TikTok trends usually fall under the category of senseless, but the latest viral trend is anything but innocent. In fact, it’s a form of check fraud called check kiting.
Last week, videos surfaced showing people taking advantage of a “glitch” in Chase Bank’s system. The glitch allowed Chase Bank members to write a check for more money than they had available, deposit the check via ATM, and then withdraw the funds in cash.
While many people who took advantage of this glitch filmed themselves dancing with money they essentially stole with bad checks, they didn’t stop to think they had just filmed themselves committing check fraud against a financial institution – which can be charged as a felony offense.
What is Check Kiting?
From a legal perspective, those who wrote bad checks against their Chase accounts committed a form of check fraud called check kiting. Check kiting occurs when someone knowingly writes a check for more than they have and deposits it, knowing they have a few days to take advantage of the “funds” due to the time it takes for the check to clear. Sound familiar?
How is Chase Addressing the TikTok Check Fraud?
Chase was quick to address the viral trend and set the record straight on the reality of people’s actions.
“We are aware of this incident, and it has been addressed,” a Chase spokesperson said. “Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple.”
At this point, there is no confirmation from Chase on the scope, but they swiftly froze thousands of accounts and have started to reconcile balances. Many customers shared surprised reactions of negative balances on TikTok… shocker, you wrote a bad check and now your account is in overdraft, right?
Additionally, Chase has shared information with law enforcement, which was easy enough since it was their own customers who committed fraud, with many filming themselves in the act – and in many instances bragging about it or making it “rain” at the ATMs… which also have surveillance cameras. Not the brightest moment for many.
What if you Participated in the Chase Bank TikTok Scam?
If you were caught on camera knowingly writing a bad check, it may be hard to do anything but claim ignorance if Chase opts to pursue action beyond simply reconciling bank accounts to reflect the negative balances. However, as always in potential legal situations, the most advisable route is to contact a legal professional.
Beyond potential fines and incarceration, those found guilty of check fraud may also face life-changing financial consequences, including the inability to open credit cards, checking accounts, or apply for loans.
If you did participate, your best bet may be to simply return the money to get your account back to normal. While this is not legal advice, common sense suggests you may want to avoid asking for a refund on any overdraft fees… no matter what the next TikTok video tells you to do.
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