JPMorgan Chase, the largest US bank by market capitalization, is filing lawsuits against people who stole money from the bank after following the advice from a viral “money hack” that sprang up on TikTok in late August.
This check-writing “hack” circulated on social media this summer, showing people that a glitch in Chase’s system would let them write checks to themselves, deposit them at ATMs and immediately withdraw this money.
“This ‘money hack’ wasn’t just bad advice — it was actually check fraud, which is a felony,” Alaina Fingal, a money coach and CNET expert review board member, shared in a recent story.
The glitch in Chase’s system allowed customers to pull out more money than they had in their bank accounts, essentially stealing from the bank. Chase quickly caught on and fixed the system issue.
Now, Chase Bank is investigating thousands of cases of fraudulent activity, starting with the biggest offenders first, according to Reuters.
How much is Chase suing for?
In most cases, alleged perpetrators of this “hack” are being sued for the amount they withdrew, and lawsuits could potentially lead to criminal charges. While these civil cases are separate from criminal charges, Chase has said it has referred cases to law enforcement agencies.
Chase filed lawsuits in three federal courts in Los Angeles, Houston and Miami, specifically accusing two individuals and two businesses of utilizing this system glitch to obtain more than $661,000, Reuters reported. The bank is still investigating thousands of cases of potential check fraud.
How to avoid ‘bad’ money advice on TikTok
While there are certainly financial educational TikTok accounts you can take advantage of, the Chase Bank glitch highlights the need to have more than one source of information. Fingal suggests doing some research on your own before following any money advice. That includes researching the financial tip, as well as the account posting the advice.
She warns against following money advice online from anyone without credentials such as a certified financial planner (CFP), financial coach or certified public accountant (CPA).
You should be skeptical against any hack offering “free money,” Fingal said. If a tip sounds too good to be true, it probably is.
