Why are the chase bank “glitch” criminals getting negative money in their account as opposed to the extra money just being removed?

Question

Why are the chase bank “glitch” criminals getting negative money in their account as opposed to the extra money just being removed?

In: Economics

Answer 1

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.