The recent viral TikTok trend, which began on August 29, involved a user sharing an ATM image displaying an inflated account balance due to a fraudulent deposit exceeding $80,000.

This trend falsely suggested that Chase Bank allowed immediate withdrawals from deposited checks, prompting individuals to attempt to exploit this perceived 'glitch' by writing and cashing large checks.

While banks typically make a portion of deposited check funds available immediately, customers remain liable for any withdrawn amounts if the checks are later deemed fraudulent.

Experts, including Kimberly Palmer from NerdWallet, emphasized that this type of fraud, known as check kiting, is not new and is easily traceable.

Participants in this scheme now face negative account balances and significant debt, with reports of individuals experiencing overdrafts as high as $11,000.

Chase Bank issued a warning that depositing fraudulent checks constitutes a clear case of fraud, despite the popularity of the method online.

Warnings included reminders that Chase has access to personal information that could easily identify those committing fraud.

The FTC reported a record loss of about $10 billion to scams last year, with younger individuals particularly vulnerable to online fraud.

Chase Bank has addressed the issue, locking accounts that exploited the glitch and marking affected accounts with negative balance labels.

Legal repercussions may follow for those engaging in this fraudulent activity, potentially resulting in hefty fines or imprisonment.

This incident reflects a broader trend of misleading financial advice proliferating on social media, where uncredentialed 'money gurus' share illegal or ill-advised financial hacks.

Many social media users cautioned against participating in the trend, highlighting the potential legal consequences and urging individuals to conduct personal research.