As fun as it is, a bank mistake that works in your favour almost never happens in real life.
Some people who tried to take advantage of the “Chase Bank glitch” that went viral could get in a lot of trouble, according to experts. Their bank accounts could be frozen, they could end up with huge losses, or they could even go to jail.
Some people thought they could get “free” cash from Chase JPM -2.00% ATMs because of the bug, which has been the subject of several popular TikTok videos. At least some Chase cash machines let people pay a cheque they wrote to themselves for more than what was in their bank account, according to these posts. They could use some or all of the money on the cheque right away because of this.
It can take a few days for banks to process checks before putting money in customers’ accounts. But in the case of the “Chase Bank glitch,” some or all of the money on the placed check was available right away. This let people get their money before the checks were found to be fake. Online posts showed that some of these scams involved as much as $40,000 in money.
As you might expect, the bank did something when social media posts showed that this “glitch” had happened. Chase said that the problem has been fixed and told people not to try it again.
A Chase spokesperson said, “It’s fraud, plain and simple, to deposit a fake cheque and take the money out of your account, no matter what you see online.”
Lawyers and accountants both agree. According to Dr. James Mohs, an accounting professor at the University of New Haven, the goal behind this is nothing but scam. Penalties for fraud can be state or federal, or even both, and can range from fines to jail time, depending on how bad the scam was. The severity of the punishments would depend on the facts and situations.
‘The intent to do this is nothing short of fraud.’
Some people who did this could get in a lot of trouble, based on the state they live in and how much money was written on the cheque. Following is an example of how these check-fraud sentences might be given in New Jersey, based on what criminal lawyer Kevin Conway says.
| Check amount | Offense | Jail time (up to) | Fine amount |
| Under $200 | Disorderly persons | 6 months | Up to $1,000 |
| $200-$1,000 | Fourth-degree | 18 months | Up to $10,000 |
| $1,000-$75,000 | Third-degree | 5 years | $15,000 |
| Over $75,000 | Second-degree | 10 years | $150,000 |
Those are the only charges that come with cheque fraud. Other charges may be added based on the circumstances.
There is a crime if they cash the money, take the money, and don’t give it back, Conway said. “It’s grand theft if they brag about it, even though they know it’s a mistake.” It’s easy to turn something into a crime.
To be clear, not every mistake a bank makes is a crime. “There have been times when the bank put money in the wrong account,” Conway said. “Okay, that’s not a crime in and of itself.”
You need to return that money, though. “If you spend it and don’t return it or take it to the next level like these people are, where they know there’s a problem with the system, then it becomes a bigger problem because you did it on purpose,” Conway said.
But how could those people really think they could get away with that? Especially after posting about it on social media?
“When people commit fraud on purpose, their reasons are always unclear, don’t make sense, and are hard to explain.” “Fraud is fraud, no matter how little the amount is,” Mohs said.
Will people really go to jail for the Chase Bank bug? It relies on.
People who didn’t return the money could get in a lot of trouble, because it’s up to the bank to decide whether to report the person to the police.
JPMorgan Chase wouldn’t say anything about possible criminal charges.
The ranges for first- and second-degree crimes are very high and always lead to a state prison term. For third and fourth degrees, you can get bail with local time or local time. “It’s not good,” Conway said.
The prices might change, though.
“You can plead to a second degree and get sentences to a third degree. If you can get the sentence lowered, you might not have to go to jail.” “We can talk about all of it,” Conway said.
But people who took advantage of this bug could face more than just jail time. For those who shared videos of themselves doing this “free money” hack, Chase later took the stolen money out of their bank accounts, leaving them with huge negative balances, sometimes in the tens of thousands of dollars. A few other people who tried to use the bug said that their bank accounts were put on hold.
In a follow-up video, someone who said they had tried the glitch said, “This Chase glitch s, don’t do this s man.” His account had $10,997.58 less than it was worth.
