This "Free Money Glitch" Took Over Tiktok

Summary

Highlights

• Chase Bank's glitch allowed users to cash checks without backing funds—an act termed as check fraud. 💸
• The glitch was shared widely on TikTok as a 'free money glitch' but ended badly for many involved. ⚖️
• Chase flagged all accounts as high trust due to a system error, which was promptly corrected. ✅
• Users were warned against such fraudulent activities by Chase, stressing potential legal actions. 👮‍♂️
• Social media platforms often give rise to risky financial trends that aren't always legitimate. 🌐

Key Takeaways

• The 'free money glitch' was actually check fraud due to a glitch at Chase Bank. 🏦
• Exploiting this glitch was heavily discussed on TikTok but came with severe consequences. ⚠️
• The glitch misflagged accounts as high trust, affecting numerous customers. 📉
• The bank quickly fixed the issue and emphasized the legal implications. 🚨
• Such trends highlight the risks of viral financial advice seen on social media. 📱

Overview

Chapters

• 00:00 - 00:30: Introduction to Chase Glitch The 'Introduction to Chase Glitch' chapter discusses a brief glitch in Chase Bank's system that allowed people to write and deposit checks for sums they didn't actually have. Before the bank could verify the funds, the glitch provided immediate access to the money, leading people to withdraw it. This situation became popular on TikTok, where it was referred to as a 'free money glitch' with seemingly 'zero consequences.'
• 00:30 - 01:30: Explaining the Glitch and Its Fraudulent Nature In this chapter, the fraudulent nature of a 'free money glitch' is discussed. It's essentially a form of check fraud, which has been around for a long time and is not a novel method of deception. This type of scam is compared to tactics used by the character in 'Catch Me If You Can', highlighting that it's an old and well-known fraud technique.
• 01:30 - 02:30: High Trust Accounts and the Glitch Exploitation The chapter discusses a banking process where high trust accounts, typically associated with high creditworthiness, receive immediate funds upon depositing a check. However, a glitch caused all accounts to be treated as high trust, allowing everyone to exploit this feature temporarily. This led to widespread fraudulent activity, and now many individuals owe significant amounts of money back to the bank.
• 02:30 - 03:30: Chase Bank's Response and Risks of Exploiting the Glitch The chapter discusses a glitch in Chase Bank's system that is being referred to as check fraud. A Chase spokesperson confirms that the incident has been addressed and emphasizes that depositing a fraudulent check and withdrawing funds is considered fraud. The chapter raises questions about the risks involved, such as going into debt by withdrawing money that isn’t actually available.
• 03:30 - 04:30: Social Media Influence and Misleading Information The chapter titled 'Social Media Influence and Misleading Information' discusses the impact of social media platforms, particularly TikTok, on spreading potentially misleading financial strategies. The transcript highlights an example where individuals are encouraged to rely on chance-based methods, like gambling, as a solution to financial issues, such as glitch-induced loans. It warns about the propagation of such risky and unauthorized financial advice online.
• 04:30 - 06:30: Credit Card and Buy Now, Pay Later Issues The chapter discusses issues related to credit cards and 'Buy Now, Pay Later' schemes. It highlights a viral 'money glitch' supposedly occurring at Chase Bank in New York, where people are attempting to obtain free money. However, the chapter warns against pursuing this glitch, noting the risks of ruining one's credit or facing legal consequences.
• 06:30 - 07:30: Treasury Bonds and Risk-Free Investments This chapter discusses the nuances of treasury bonds and risk-free investments, focusing on financial behaviors reflecting economic trends. It touches on credit card usage patterns, such as individuals using credit cards to manage 'buy now, pay later' loans, and comments on indicators of economic health, such as bank fraud. The chapter explores how these financial actions represent broader economic conditions and the complexities of seemingly simple investment choices.
• 07:30 - 09:30: Sports Gambling and Financial Distress The chapter discusses the financial distress faced by individuals engaged in sports gambling. When unable to repay debt, these individuals were resorting to requesting chargebacks from credit card companies. For instance, after spending on buy now, pay later (BNPL) schemes, and failing to repay, they would charge back the costs, pretending not to recognize the transactions. Banks have started to take notice and enforce bans on such exploitative practices as the financial facade begins to unravel.
• 09:30 - 10:30: Formula 1 Passion and Fan Allegiance The chapter titled 'Formula 1 Passion and Fan Allegiance' delves into the dynamics of fan engagement and the deep-seated loyalty Formula 1 fans possess for the sport. However, the transcript provided remarkably deviates from this topic to discuss a financial matter. It details how banks, specifically Chase, have banned the use of credit cards to pay for buy now, pay later services. This prohibition aims to prevent financial juggling that could lead to deeper debt issues. The conversation emphasizes the dangers associated with buying now and paying later, advising caution against such practices.
• 10:30 - 11:30: Cultural Commentary and Comedy The chapter 'Cultural Commentary and Comedy' dives into the emerging issue of 'buy now, pay later' schemes that have become popular among consumers. It highlights the growing problem of 'phantom debt' that Wall Street struggles to track as these schemes allow people to buy more than they can afford. The narrative addresses mixed perspectives from the user base, where some find relief in these financial tools during tight cash flow periods, whereas others regret not paying upfront due to the financial strain realized over time. The chapter underscores the cautious approach needed when engaging with such credit options, emphasizing the unseen financial burdens that loom with deferred payments.

This "Free Money Glitch" Took Over Tiktok Transcription

• 00:00 - 00:30 have you heard about the chase oh yeah we talk about that too let me see do I have a thing on that if you guys don't know for a very brief period there was a glitch in Chase Bank system where you could essentially write yourself a check get the check deposited and then before the the bank checked if that money was there like if you actually had what was in the check they would give you the funds and you could withdraw them and so people put it on Tik Tok as like free money glitch there was all these Tik Tok people like this is a zero consequence
• 00:30 - 01:00 free money glitch and people started doing it and obviously it didn't work obviously that's fraud I mean like it's actually just check fraud it's not even like a new way it it's just check fraud it's just it's like what um The Catch Me If You Can guy the Leo de Gabriel guy it's not it's like there's nothing even new about it it's just that Chase Bank
• 01:00 - 01:30 uniquely was flat they have this thing where if you're like a a high status account or like a high credit worthy High trustworthy account they'll just automatically give you the funds when you deposit a check so it's fast CU they want you to not have to wait for your check to clear they just assume you're not lying they apparently had a glitch on their end where every account was flagged as like high trust High status and so everyone could do this and they were taking advantage of it but like it is just fraud and now people owe tons of man they really told me to tap thing
• 01:30 - 02:00 next day was supposed to clear look at my account yo bro what the Apparently this glitch is called check fraud we are aware of this incident and it has been addressed said a Chase spokesperson regardless of what you see online depositing a fraudulent check and withdrawing the funds from your account is fraud plain and simple but what if though here's the thing here's what they didn't check out you could be in debt from this obviously take out the money you don't have it but what if you take
• 02:00 - 02:30 out 100 Grand and you double it on the tables or on a amazing parlay then you can pay it back no problem or just delete the Chase app what are they going to do to you now you do have it okay so next time this happens don't let this slow you down don't let this stop you all right let's talk about that chase glitch them improving loans up to like I didn't seen 20K 0k M seeing a good amount of numbers like bro just in general if Tik Tok tells you there's a way to get a free
• 02:30 - 03:00 $90,000 from Chase Bank you should trust it every time you should trust it every time cuz that is that is smart that is risk-free people are currently lined up outside of Chase Bank in New York trying to do the new viral glitch to get free money a set is heavy is laed up no this is elant and then some loser says please don't try to chase money glitch you're either going to ruin your credit or go to to jail those are
• 03:00 - 03:30 the two outcomes loser he will always want to keep you down dude these are signs of good economies yeah exactly people are lined up to do obvious check fraud from a bank that's a sign of a good economy anyway that that it wasn't a major story but I don't want to mention that it it they they fixed it relatively quickly but people were doing it oh speaking of credit cards godamn hey the House of Cards here it turns out surprise surprise maybe I've mentioned this once or twice people are using credit cards to pay off their buying out pay later loans wow that's
• 03:30 - 04:00 awesome and it turns out when they can't pay those back they were basically requesting chargebacks from their credit card so what they do is they spend 600 bucks buying a plane ticket or something on buying out pay later then when they can't pay it back they put it on their card and when they can't pay that back they charge back the card on the buy out pay later payment and like pretended it wasn't them anyway the banks are wising up as this house of cards starts to crumble and they have banned the use of
• 04:00 - 04:30 credit cards I mean not all banks but a bunch of banks just did it Chase was the one in this article have banned the use of credit cards to pay for buy now pay later as of now so the juggling is coming to a stop dude crazy it wasn't banned already I know I do it's crazy it wasn't banned already you should not be able to pay for a different form of credit with a different form of credit that's like textbook getting in too deep that's just textbook juggling anyway highly problematic so as I've said before buy not pay later very dangerous please avoid if possible a lot of people
• 04:30 - 05:00 are waking up to this a lot of people are waking up to this I saw Americans are racking up Phantom debt That Wall Street can't track this is buy out pay lator people have been talking about it more people are reporting that they they've bought way more than they thought they could recently pay back I'm so scared of this is from not too long ago burned from overspending uh some buy now payad users worn others away many consumers are finding buying out pay later is a godsend when cash is tight others are wishing they paid they paid upfront to avoid pain later I was seeing my Pat continually eating up where's my
• 05:00 - 05:30 money going if you can I again I understand everyone's got different situations but if you can't avoid it people are finding out that you know when the bill comes do it's not nearly as fun hey Atri how did treasury bonds work saw your video today and wondering how they can make money can you make treasury bonds please yeah I'll answer that because I got a lot of DMS about it link is DM mean I'm not going to go through the whole buying process but like if you bank with Charles Schwab or chase or Morgan Stanley or like you should be able to do it through the through your brokerage and you could find a probably a YouTube tutorial treasury bond is essentially you're buying an IOU from the government and the government has never not paid these
• 05:30 - 06:00 out since the War of 1812 so it's considered risk-free certainly for the six-month one you have zero worries and so right now because interest rates are high you can get 5 a half% roughly which is awesome imagine if you bought a stock and it was in the green up 5% 6 months later or a year later you would feel good you wouldn't be you wouldn't be super happy it's not 10x but it's happy if you know that it's going to happen risk-free it's nice and so you may lose a little bit from what you're not getting from a riskier investment but it's 100% guarantee I don't want the
• 06:00 - 06:30 greedy at the bank to take my .01% cut from my profits tell them BS gambling sounds better TBH well there's also that obviously I I didn't get to go into this more but let's see if we can pull it up and I might do a deeper dive on this but this is a real thing Americans are draining their stock portfolios to shovel more money into sports Bing which is a real effect they are finding that especially young people who used to be like oh let me try out Rob hood or
• 06:30 - 07:00 investing or something which again they probably lost money on GameStop or something stupid I decided that and they're going all in on Sports gambling and to to Great negative effect they are turns out not net winners there's there's a a lot of new research coming out about sports gambling that shows that like this recent growth like the past year and a half of massive rise in sports gambling has been overall bad it's been like there's more people the gambling help hotlines when people
• 07:00 - 07:30 reporting that they're facing serious financial distress from Sports gambling like people are getting deep into it and then the last thing I want to mention is that I made the greatest prediction of all and it's not about the economy it's not about jobs or some kind of stock or anything it's about my favorite lifelong passion Formula 1 as you guys know I a Die Hard real fan of Formula 1 and my fan L clerk I my my real fans call him L Clark just won
• 07:30 - 08:00 another tournament he's my fan yeah Ferrari baby Ferrari fans rise up We Are Legion we are strong we are proud wow look at him so handsome this is big this is big for us fans I may not watch the actual races nor follow the scene so much but like I am the world's biggest fan of F1 and for me this is a big day and it's sort of Vindication of what I've been saying all
• 08:00 - 08:30 along did you watch the Netflix doc I didn't watch the Netflix doc per se but I invented what it looks like in my mind and then projected that into my mind Palace so in a way I'm kind of like I did watch it you know like I know what it could look like name one American driver in F1 Americans so arrogant I'm sorry but as an F1 fan I'm sick of these Americans wanting to be named and labeled every it's ridiculous shut up I'm I'm an F1 fan all I care about is
• 08:30 - 09:00 Europeans Italians really the greatest country on Earth and I care about Ferrari the greatest company on Earth and I want to race okay Americans only care about NASCAR and beer and donuts okay they don't know about good pasta they don't know about good pizza and they don't know about what else does Europe have chees stinky cheese their cheese doesn't even stink bro the think about America you sniff their cheese you can't it doesn't even it doesn't even make you want to vomit what what what is that what is that horeshit pizza's American
• 09:00 - 09:30 bro wrong classic amera poor take [Music]