TikTok Users Encourage Check Fraud: Banks Must Address The ‘Glitch’

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.