A Chase bank location.Photo:Don and Melinda Crawford/UCG/Universal Images Group via Getty
Don and Melinda Crawford/UCG/Universal Images Group via Getty
JPMorgan Chase is reacting to viral social media posts about some of its customers attempting to exploit a “bank glitch” that amounts to simple checking fraud.
“We are aware of this incident, and it has been addressed,” a spokesperson for Chase said in a statement to PEOPLE and other news outlets.
The spokesperson did not comment on the extent of the fraud or the penalties for accounts and customers involved.
But, they warned, “Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple."
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(The practice is similar to check kiting.)
It’s unclear how many Chase customers actually attempted to withdraw money using the “glitch” based on the bad checks.
Some social media users also claimed that they then suffered massive negative account balances — in the tens of thousands of dollars — as a result of attempting to take out cash this way.
source: people.com