Check fraud is not new. But due to the recent TikTok “Chase Money Glitch” viral trend, the question of what is check fraud is circulating on social media. But to be perfectly clear, that TikTok trend was not a “hack” or “glitch”, it's check fraud.
What is Check Fraud
Check fraud involves deceptive practices to obtain money or goods that the perpetrator is not entitled to, and it's a form of theft.
Check Fraud Examples
- Writing bad checks: Intentionally writing a check for more than the account balance
- Altering checks: Changing the payee or amount on a legitimate check
- Forging checks: Forging a signature or endorsement on a check
- Counterfeiting checks: Creating a fake check for an unauthorized account
- Stolen checks: Stealing a check and altering it before cashing or depositing it
- Check kiting: Writing bad checks and using multiple accounts
- Paper hanging: Writing a bad check and taking advantage of the time it takes for checks to clear
- Chemical alterations: Using chemicals to erase the ink on a check so new information can be written
- Post-dating: Writing a check with a future date
Is Check Fraud a Felony?
The legal consequences of check fraud can range from misdemeanors to felonies depending on the circumstances like:
The amount of the check. In many jurisdictions, check fraud involving smaller amounts may be charged as a misdemeanor, while larger amounts are more likely to be felonies.
Prior offenses. A person with prior convictions for check fraud or other financial crimes may face felony charges even for a relatively small amount.
Intent. If the prosecution can prove intent to defraud, the charges are more likely to be severe.
Specific state laws. The laws regarding check fraud can vary from state to state, with some states having stricter penalties than others.
Final takeaway
Videos of Chase customers holding large amounts of cash outside ATMs have been removed from TikTok. Now, some customers are claiming ignorance, posting videos saying they didn't realize depositing bad checks and withdrawing the funds is fraud.
Some have retained lawyers as Chase is seeking restitution of stolen funds. Individuals flaunting the ‘glitch' in videos may have inadvertently provided evidence for easy prosecution of check fraud.
Anyone taking part in check fraud may face criminal charges in addition to being reported to ChexSystems as well as EWS, two consumer reporting agencies for bank accounts.
