Why are the chase bank “glitch” criminals getting negative money in their account as opposed to the extra money just being removed?
In: Economics
As everyone else has said it was actually just check fraud or check kiting. But to add further, they assumed it was a glitch because of the instant funds availability- which is normal if funds are transferred within the same bank (eg., a Chase account to a Chase account). They thought they were getting around the normal X number of days for a hold when the funds are to be transferred from an external source (eg., BOFA account to Chase account).
In short, these dummies thought they were tricking the system to give them “fake” money from THEIR OWN ACCOUNTS with all of their identifying information, their picture, and videos and pictures from Chase’s security cameras because they don’t understand how checks work.
> Why are the chase bank “gliitch” criminals getting negative money in their account as opposed to the extra money just being removed?
Because when a bank says ‘we made a mistake and credited your account with $500 that you should not have, please send us the money back’ and you refuse to send it back, they will take it out of your account when they get the chance.
Pretty soon they won’t have to worry about it anymore. Because they’ll be in federal prison for check fraud.
Cuz they were dumb and spent it is the short of it. If you have no money, then you take some money from your moms purse, spend it and she asksfor it back, you now have debt (negative money) because you do not have the money to pay her back
What “extra money”? The money doesn’t exist. This is fraud, specifically named “check kiting”.
What i don’t get with the US banking system is that any is the check that has not cleared already accessible for withdrawal?
This was a thing where I life, back in the late 80s here when atms became widespread, and the banks figured out to deal with it. Why is this a thing now in the U.S.?
Bc they didn’t have the funds to cover it in the 1st place. $300 acct minus bogus $1000 withdrawal equals -$700. They owe money and if they don’t pay it back quickly, they will have their accts closed and will be blacklisted for other banks due to a low “bank score”. They will have to get shady online-only bank accts and their debt will get sent to collections. Over a few grand and they get sued. Check fraud is no joke and is the basis for most money scams.
I want to piggyback on this ELI5 with a question of why does it front your balance with the pending funds in the first place to allow this (and actual check cashing scams) to perpetuate?
Well, if you didn’t withdraw the money then you’d be fine but how are they supposed to get back the money you stole otherwise?
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