JPMorgan Plans to Report Customers Who Exploited TikTok 'Glitch' to Authorities

What is going on? And why in the world is the “glitch” part still mentioned in headlines?

The headlines should just be tiktok convinced large numbers of gullible people to commit easily caught bank fraud.

TikTokkers convinced people to kite checks - the only “glitch” appears to be they could do the first half of committing the fraught easily for a time, the glitch had no impact on the second step fraudsters usually care about - not getting caught.

It’s barely different than if TikTok videos claimed you could walk into banks unarmed but with a note that said “this is a robbery” and then get “free” money.

Apparently the Dunning Krueger effect was inspired by a story of bank robbers who thought lemon juice would make them invisible… this event is just as bad.

European here (not used to checks, "checking accounts" or any of the USAmerican banking system). How does this really work? Don't they take your money off the account once the check is cashed?

As far as I can tell, this works as follows: 1. You have 50$ in an account (for example) 2. You write a check for yourself worth 200$ 3. You cash that check, thus having 250$ in your account 4 .You withdraw 200$ at an ATM and still have 50$ in your account.

At what point doesn't the bank figure "hey, someone cashed this check, you now have -150$ thus owing us [JPMorgan Chase] 150$ plus any fee we agreed on" ?

Why wouldn’t they? Is there some alternative reality where people get to keep the proceeds of fraud because they’re stupid?

Check fraud.

https://www.axios.com/2024/09/06/the-real-problem-with-the-c...