- Unlocking Free Money from ATMs, a Fad Popularized on Tiktok
First published on ntv.de
Excited young individuals can barely contain their disbelief. They celebrate and jump around in front of a Chase bank branch, throwing some of the $20 bills from the stacks they hold into the air with excitement. Various videos displaying similar scenes surfaced on TikTok, a favorite platform among the youth, last week. In these videos, numerous users revealed that they managed to withdraw tens of thousands of dollars of "free money" from Chase ATMs, allegedly due to an error.
The viral trend or "life hack" had spread on TikTok and other social media platforms: users claimed they discovered they could issue checks for large sums regardless of their account balance. At Chase ATMs, they could withdraw a portion of these imaginary amounts without any verification of the money.
What the unsuspecting TikTok users didn't realize at first: the free money from the ATM trick worked just like classic check fraud, although in a particularly hasty manner. It took only a few days for the withdrawn amounts to be debited from the accounts - or for the bank to attempt to do so, but fail to find sufficient funds in the relevant accounts. In many cases, the accounts were reportedly frozen, according to US media.
Payment method perplexing to youth
However, the supposedly clever life hackers, who had already spent most of the withdrawn money, found themselves not only facing a mountain of debt but also severe penalties. Issuing and circulating uncovered checks is fraud, and with sums in the tens of thousands of dollars, it is a federal offense. This means the FBI is investigating.
These investigations are likely to be aided in most cases due to the incredibly naive behavior of the young offenders. Many used not only their own account and checkbook but also proudly posted videos of themselves and their supposed loot on social networks. Almost all of these videos have now been removed by TikTok and other platforms.
Astonishment at the naivety of TikTok users
The number of those involved in the fraud scheme remains unknown. The affected bank, Chase, stated that all fraud attempts are monitored and serious cases are reported to the FBI. Commentators on social networks and in US media expressed astonishment at the naivety of the TikTok users, who apparently failed to understand that payments by check, although they may be delayed, will always be deducted.
Financial journalist Felix Salmon from the news portal Axos, however, pointed out that it would be more sensible to abolish paper checks altogether than to explain this outdated and scarcely traceable payment method to the youth. In both the US and Germany, checks are used less and less frequently. According to the Federal Bank, payments by check now account for less than 0.01 percent of payment transactions.
Despite the confusion and perceived advantage, the TikTok users who participated in this scheme may face severe consequences. Good luck to them as they navigate through the legal process and potential penalties.
The unexpected discovery of check fraud as a result of this viral trend has highlighted the need for financial literacy, especially among younger generations. It's regrettable that such a simple and outdated payment method like checks still causes confusion, leading to unintentional fraud.
