The viral “free money glitch” was a check-fraud scheme, not a way to get free cash. Chase said knowingly depositing a fraudulent check and withdrawing the funds is fraud. But the available reporting does not show that everyone who tried it was reported to police, arrested, charged or convicted. What is documented is that Chase addressed the incident, some customers reportedly faced account holds and negative balances, and the bank later filed four civil lawsuits seeking to recover money from customers it accused of exploiting the trend.
What was the “free money glitch”?
In late August and around Labor Day 2024, TikTok and other social-media posts promoted a supposed Chase ATM glitch as a way to get free or unlimited money. The method described in reporting was to deposit a fraudulent or bad check and withdraw some of the amount that appeared available before the check was returned.
That is check kiting: using a check deposit and withdrawals to obtain funds that are not actually backed by a valid payment. Cornell law professor Dan Awrey described it to Fortune on September 3, 2024 as “Check kiting. It’s called check kiting. And it’s been around since the invention of… checks.”
The Office of the Comptroller of the Currency (OCC), in a December 11, 2024 speech, described viral social-media posts about JPMorgan ATMs and a temporary technical glitch that let customers deposit large checks and withdraw funds before the checks cleared. The speech said media reports described thousands of possible incidents under investigation. That is not a verified final count of participants or fraudulent transactions.
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Did Chase report participants for fraud?
Chase’s spokesperson told Fortune: “We are aware of this incident, and it has been addressed. Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple.” The bank also said it would cooperate with law enforcement, according to Payments Dive’s September 2024 report.
Those statements do not establish that every person who participated was individually reported to police. The OCC summarized media reports of an investigation into possible incidents, but the available sources do not establish a final total for referrals to law enforcement, arrests, criminal charges or convictions. “Reported,” “investigated,” “sued,” “charged” and “convicted” describe different actions and should not be treated as interchangeable.
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What consequences were documented?
Account holds and negative balances
Payments Dive reported that some participants faced seven-day holds and negative account balances, citing a separate news report. These were reported outcomes for some customers, not a confirmed consequence for every person who tried the scheme. A check deposit may show funds as available before a check is finally paid; availability is not proof that the check cleared or that the money belongs to the depositor. Chase’s check-fraud guidance explains that a depositor may be responsible for a loss if a deposited check is later found to be fake.
Four civil recovery lawsuits
Banking Dive reported in October 2024 that JPMorgan Chase filed four similar civil lawsuits against customers it accused of keeping money obtained through the scheme. The article said Chase alleged that the defendants cumulatively retained more than $660,000. In one Texas complaint, the bank alleged that a defendant deposited a $335,000 check and kept approximately $290,939.
Those figures were allegations in civil complaints as reported at filing, not findings of guilt or proof of final judgments. The reporting does not establish that every participant was sued or prosecuted, or the final status of every case.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why an available deposit is not the same as cleared money
Banks may make some or all of a check deposit available before they finish confirming that the check will be paid. If it later bounces or is found counterfeit, the bank can reverse the credit and seek repayment from the depositor. Chase’s consumer guidance on check scams advises customers to contact the bank promptly if they think they have been affected.
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For context on the broader risk of online scams, the OCC speech cited an FTC publication reporting that, among Americans aged 18–59 who said they lost money to a scam in 2021, 31% said it began on social media. The share was nearly 40% for adults aged 18–29 and 15% for adults aged 60 or older. These figures describe the reported starting point among people who lost money—not the share of all scams or all social-media users. See the FTC’s December 8, 2022 report, “Who Experiences Scams? A Story for All Ages”.
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If you are dealing with a check deposit from this trend
- Contact the bank using a trusted route, such as the number on the back of your card or on an account statement, or by visiting a branch. Chase recommends contacting it promptly about suspected check scams.
- Keep deposit receipts, account statements, messages, and any bank notices. Do not rely on social-media posts to determine whether a check cleared or what you owe.
- If you knowingly participated or face a demand for repayment or legal process, consult a licensed lawyer in your jurisdiction. The legal consequences depend on the facts and applicable law; this article cannot assess an individual case.
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