Last week a viral money hack made its rounds on TikTok, claiming you could get extra money from an ATM if you have a Chase Bank account. If you fell for this scam, it's actually fraud and Chase will be removing the funds from your account.
People were able to write checks to themselves and deposit them at ATMs, according to stories shared on Reddit. The glitch allowed people to access the money immediately, letting them withdraw the funds before the bank could identify the error. Typically, you can't withdraw money until the bank verifies the check is legit, which can take a few days. It's not only a bad idea, it's actually illegal.
“We are aware of this incident, and it has been addressed," a Chase spokesperson said. "Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple."
While people who participated may have enjoyed the extra money, the bank quickly caught on and started correcting balances. When the glitch was fixed, the checks bounced and customers saw negative balances. The end result was inevitable, according to Alaina Fingal, a member of CNET's Expert Review Board and founder of The Organized Money.
"It's tempting to try to keep the money, however, banks have systems in place to catch these types of errors," Fingal said. "It may take them a few days or possibly even a few weeks, but they will realize the error and reverse the deposit."
If you benefited from the temporary glitch, either intentionally or not, here's how to rectify the situation and avoid the very real consequences.
What to do if you got money due to the Chase glitch
Whether you thought you had some of the money in your account or you knowingly caught onto the viral scheme, don't assume it's free cash up for grabs.
Call your bank -- even if the error is in your favor, said Fingal. Then make a plan to pay back any money ASAP.
Even if you did not realize the error, the bank has the right to recover the funds from you, Fingal said. You should return the funds as soon as possible. If you spent the money, return the items as soon as possible to get the money to return it. If you cannot get the money back, contact the bank for options for repayment. Keeping the money and closing your account can lead to worse financial consequences.
Read more: Watch Out for These Devious Banking Scams
Potential consequences if you don't return the money
Chase's system error is not the bank's cost to cover. It's your responsibility to pay back.
"The bank doesn't need permission to recover funds deposited in error, and it will remove the funds as soon as the error is realized," said Fingal.
And that's exactly what Chase is doing.
Customers are now seeing negative bank account balances and will need to pay back the money they withdrew. Every deposit made to the bank, including paychecks, will go toward paying down the negative balance. Avoiding the bank or closing the account will only make it worse.
You may face theft and criminal charges. The bank may be able to get a court order to force you to repay the amount, and you could go to prison.
Monitor your bank activity daily
Monitoring your bank accounts daily lets you catch errors and avoid getting caught up in one of these glitches, Fingal said.
Set up push notifications, or automated text messages or emails, to alert you of deposits and withdrawals. If you spot an error, contact your bank's customer service right away.
