Why are the chase bank “glitch” criminals getting negative money in their account as opposed to the extra money just being removed?
In: Economics
It’s likely due to the way the bank’s system reverses transactions, causing an overdrawn balance instead of simply removing the extra funds.
It’s hard to believe people can be this fucking stupid. I’m laughing at all of the people going into debt for this. They deserve all the misfortune they get from their actions. I truly hope they learn from it.
Normally when you deposit a check, the funds are not available for withdrawal right away. The amount of time before it’s available is based on a schedule set by Regulation CC. If the check is returned for whatever reason, this hold will ensure the funds are still in the account for the bank to reverse the deposit.
However, that is assuming the hold is still in place when the item is returned. The “glitch” here is that the ATMs weren’t placing the requisite holds. This allowed customers with no money in their account to deposit large checks, knowing they would not be honored, and then pulling all the money out before the items are returned. When the items are returned, Chase has no option but to bring the accounts negative.
Fun fact: When the funds are available in the account, this does not mean the item has “cleared”. The only time your bank will know whether the item has cleared is when it doesn’t. The assumption is the hold period allowed by Reg CC *should* be enough time for the other bank to refuse payment, but that’s not a guarantee. The purpose of Reg CC is to find that happy balance between customers not being negatively impacted by a hold and the bank having enough time to assure the item is paid.
I used to work at a bank and this barely worked. Cards have withdrawal limits and cheques are subject to holds. The two times in five years someone successfully did this it backfired on them spectacularly. It was not worth it
what do you think the extra money being removed means? 🤦
Is this actually happening or is it just a bunch of TikTokers making fake videos?
Is this actually happening though? Beyond a few people here and there? It has the same energy as the tide pods that no one was actually eating. I know there are loads of TT videos, but most seem like satire.
Growing up in NYC ive seen multiple people I went to school with who have been living off this since the moment they turned 16 in like 2012. They’ve even bought houses/brand new cars off this. They post chase, BOA, Wells Fargo? all day on their stories for the past 15 years. We call them scammers lol
They’ll take your debit card and ask for your pin deposit a blank check and promise you 5-10k but they take like 90% of the cut and give you $1000 and you get banned for life from whatever bank you did it at. This is oldddddddd news. I still see these posts by over 10 people daily since 2010-2014 that I know lol
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.
In addition to the explanations: DO NOT DO THIS. It is fraud, it is illegal, and the people who have done it stand a fair chance of being charged with felonies. They could go to prison. Unless you want to go to prison, do not commit check fraud.
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