Chase Sues More Customers for Stealing Money Last Year Using Viral TikTok 'Money Hack'

Last October, a temporary glitch in Chase Bank's security allowed people to write checks to themselves and deposit them at ATMs, withdrawing the funds before the bank could identify the error. The incident made headlines when it became clear that many customers had taken advantage of the glitch, withdrawing large sums of money without being detected.

The glitch gave access to funds almost instantly, allowing some individuals to withdraw cash before the bank's verification process kicked in. This is a serious issue, as check fraud is illegal and can result in severe consequences for those who commit it.

Chase Takes Action

Shortly after the glitch was discovered, Chase began filing lawsuits against customers who had committed fraud. The bank has now asked state courts to require more customers to pay back any remaining funds they illegally withdrew and to cover any attorney fees, according to court petitions.

"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 Alaina Fingal, a member of CNET's Expert Review Board and founder of The Organized Money. "Customers with negative bank account balances will need to pay back the money they withdrew, or they could face legal action."

Every deposit made to the bank, including paychecks, will go toward paying down the negative balance. However, avoiding the bank or closing the account will only make it worse. Chase can still get a court order to force you to repay the amount, and in severe cases, you could even face prison time.

Avoiding Check Fraud

Even if you didn't realize the error, the bank has the right to recover the funds from you. Fingal warned that it's tempting to try to keep the money, but banks have systems in place to catch these types of errors. You should return the funds as soon as possible.

"If you spent the money on products, return the items as soon as possible to get the money and pay it back," Fingal advised. "If you can't get the money back, contact the bank for options for repayment."

Consequences of Not Returning the Money

Keeping the money and closing your account can lead to worse financial consequences in the long run. Monitoring your bank accounts daily is essential to 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," she advised. "If you spot an error, contact your bank's customer service right away."