Why are the chase bank “glitch” criminals getting negative money in their account as opposed to the extra money just being removed?
In: Economics
Because they are withdrawing or otherwise spending their faked money, so when the amount they faked gets withdrawn after the fraud is discovered their account goes into negative as the fake money isn’t in their to balance it back to zero.
My understanding is that they are committing old fashioned bank fraud by writing a bad check, then withdrawing the money before it bounces.
You have a balance of $100 in your account.
You deposit a fake $500 check so your account shows a $600 balance, then you withdraw $500 in cash, so now you’re back to a $100 balance.
Then the bank catches up. Since the check was fake, they undo the part where you had a $600 balance (because $500 of that was fake). This puts you back at a $100 balance.
Now they process the $500 cash withdrawal.
You had a $100 balance and withdrew $500. This leaves you at -$400.
You mean the people committing check fraud? If you rob a bank it’s not like they just take the money back and let you walk away.
I knew someone in rehab that had a check fraud charge haunt him for decades. Companies were willing to give him a shot in manual labor jobs despite his drug/gun charges if he was sober, but that check fraud charge eventually came up and got him fired every time. If you got involved in this thing you should be talking to a lawyer.
They deposited a bad check, then withdrew cash that they didn’t have. That puts the account in the negative. Let us illustrate:
Suppose you have a bank balance of $500. You deposit a fake check for $10000. You withdraw $5000 cash. The bank removes the fraudulent deposit. You now have $5000 in your pocket, -$4500 in your bank account, and the police banging down your door and seizing that $5000 from your pocket and hauling you off to jail. There, you can expect your negative balance to expand due to court costs, attorney fees, and fines. Also, have fun losing your job and having trouble getting an apartment.
They’re withdrawing the excess amount in cash. When the check clears, the account doesn’t have enough to cover it, so it runs into overdraft.
There is no extra money. They’re depositing fake checks and then withdrawing cash. Of course the checks bounce, so then the bank withdraws the money from their account, running it negative.
This is also known as check fraud, and it’s a crime.
Check fraud isn’t a “glitch” – people are just super-fuckin-ignorant about how money and banking work.
Because they withdrew the “fake” money from the account before the bank caught on to what was happening.
The bank can’t just take the money back because the money is gone.
There is no glitch. This is exactly how fake check scam work, and that is already been around for years.
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