Why are the chase bank “glitch” criminals getting negative money in their account as opposed to the extra money just being removed?
In: Economics
Basically, they just kited or bounced a check by cashing a check into their own accounts that wasn’t actually backed by any funds. Because banks will allow you to withdraw funds before the check you cashed “clears,” these people were able to withdraw cash from their account. When the bank processed the check, and realized that it was bad, they “took back” the money they’d credited to the scammers account, resulting in a negative balance. I assume the “glitch” was related to how much you could withdraw.
So, you “deposit” a fraudulent check for $20 grand, you withdraw $10 grand, and then when the check fails to clear, you now have a -$10 grand balance. As a side note, this is very close to the check scam/ Nigerian prince scam where someone says they want you to deposit funds into your account, you get to keep some but send the bulk of the money to them. Then you get left holding the bag when the wire transfer or check doesn’t clear.
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