Some customers who participated in the viral fraudulent act may be forced to pay back six-figure sums.
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Conway Gittens: Consumer confidence hit a nine-month high in October, after seeing the biggest one-month rebound in more than 3 years. Americans told the Conference Board they are less concerned about inflation and jobs. A separate report from the Labor Department, however, showed a continued slowdown in the labor market. Job openings in September dropped to their lowest since January 2021.
In corporate news – A social media craze is landing some customers of Chase Bank in hot water.
Chase is suing four people who utilized an ATM glitch to fraudulently withdraw at least half-a-million dollars. The trick was made popular on TikTok and Instagram. The individuals being sued deposited fake checks into their accounts, which then reflected a higher balance. Then they immediately withdrew big bucks, leaving their accounts with huge negative balances. When the electronic clearing house used by all banks went to get the money from the accounts used for the bad checks – there was nothing to collect.
According to the lawsuit, one account holder withdrew $290,000, another one took $141,000, the third defendant took $138,000, and the fourth one got away with $90,000. A spokesperson for parent company JP Morgan Chase told reporters “Fraud is a crime that impacts everyone and undermines trust in the banking system. We’re pursuing these cases and actively cooperating with law enforcement to make sure if someone is committing fraud against Chase and its customers, they’re held accountable.”
Chase is being quiet about how much money it could actually lose. While the lawsuit takes aim at just four people, the bank thinks there were thousands of copycats. The videos detailing the fake-check scheme have millions of views.
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