A Chase bank system issue recently went viral, leaving some customers shocked and scrambling to deal with sudden debt—and in many cases, legal trouble.
It all started when a banking system error led some people, thinking they could outsmart the system, to start writing checks for any amount, assuming they could get away with it. Spoiler: they didn’t. Instead, they found themselves caught in a web of financial chaos and potential fraud charges — especially after a number of people went public on social media about it, leading others to do the same.
Chase commented in a statement: “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.”
This whole fiasco has everyone talking about just how secure our digital banking really is. With so many questions swirling around, here’s a breakdown of what went down and what you should do (and NOT do) to protect yourself.
So… what happened?
It all started when a technical issue at Chase Bank’s ATMs caused a wave of confusion and financial chaos.
As news of the issue spread, some customers saw an opportunity to take advantage of the situation, believing they could write checks for any amount without repercussions. So a number of customers did just that. Unfortunately for them, the bank quickly caught on, leaving these opportunists facing not only unexpected (and self-inflicted) debt but also potential accusations of fraud.
Besides that, the issue and its fallout have also sparked a broader conversation about the vulnerabilities in our digital banking systems, especially because they can lead to serious financial and legal consequences.
What you should know
Here are some tips to keep in mind if you encounter a similar (or any) bank issue.
Do the right thing
Even if a system issue allows you to do something like withdraw or deposit more money than you have, that does not mean you won’t get in trouble for doing so. System errors are just that, errors, and the law is the law. A system error never, ever excuses illegal activity.
What happens if a bank error occurs that actually affects you negatively, even if you did nothing wrong? Even though that’s not what happened here, it’s worth knowing:
Understand your rights as a consumer
Under the Electronic Fund Transfer Act (EFTA), you have protections against unauthorized or erroneous electronic transactions, including ATM withdrawals. If you notice an error, it’s crucial to report it to your bank immediately to help prevent losing funds.
The EFTA requires banks to investigate reported errors and correct them within a certain timeframe, usually 10 business days. Always keep detailed records of your communications with the bank, including dates, times, and the names of any representatives you speak with.
Act quickly and monitor your accounts
Speed is crucial when dealing with banking errors. The longer you wait, the harder it may be to resolve the issue. If you spot a problem, notify your bank immediately and request a confirmation that your report has been received. Also, keep a close eye on your account balances and transaction history — this can help you catch any discrepancies early.
MoneyLion offers an account where you can set up transaction alerts, so you’ll always know when money is moving in or out of your account. This feature can be a lifesaver in catching errors before they escalate.
Know your support options
If your bank isn’t addressing the issue promptly, you have the right to escalate the matter. You can file a complaint with the Consumer Financial Protection Bureau (CFPB), which oversees the financial industry and enforces consumer protection laws. You may also want to seek legal advice to understand your options.
MoneyLion’s Credit Builder Plus membership not only helps you build credit but also provides access to a suite of financial tools and resources, including consultation services, which can be incredibly useful if you find yourself in a tough spot.
MoneyLion has your back
Navigating banking issues can be stressful — but MoneyLion is here to help you stay on top of your finances and provide you with everything you need to keep your financial health in check.
Looking for more financial tips and resources? Download the MoneyLion app today.
