TikTok Users Encourage Check Fraud: Banks Must Address The ‘Glitch’
- Date:September 27, 2024
- Author(s):
- Jennifer Pitt
- Report Details: 6 pages, 2 graphics
- Research Topic(s):
- Fraud & Security
- Fraud Management
- PAID CONTENT
Overview
Users of TikTok and other social media platforms have accelerated check fraud by exploiting known gaps in check fraud detection processes. The viral TikTok Chase Bank “glitch” posts have unearthed consumers’ willingness to commit the age-old fraud of check kiting. This fraud is being committed under the guise that people are in desperate need of money and are simply taking advantage of unknown loopholes in processes at large institutions.
This Javelin Strategy & Research impact note underscores the important role banks and social media companies play in combatting this type of viral check fraud scheme. FIs must stress to their customers and members that participating in these social media trends is not a joke but instead is fraud that could result in fines or even criminal charges. Banks’ failures to address this exploitation of check fraud detection processes can result in devastation.
Learn More About This Report & Javelin
Related content
Battle of the Budget: Prioritizing Scam Classification for Future Cost Savings
In the fight against ever more sophisticated and complex scams, financial institutions are hamstrung in various ways, chiefly by their own priorities: They give a bigger budgetary ...
Trump’s Cyber Avalanche and the Impact on U.S. Financial Institutions
For U.S. financial institutions, the twists and turns of the last few weeks around political promises that have quickly resulted in short-term wins for banks should be viewed with ...
Getting Personal With Scams
One of the biggest issues plaguing U.S. efforts to mitigate scams is a lack of standardization in tracking and classifying the crimes. In that sense, there is much the United State...
Make informed decisions in a digital financial world