TikTok’s Chase ATM Glitch: A Call for Financial Literacy

“There’s no free money. But without a foundation in basic financial concepts, some people may fall for these tricks.”

In recent months, a wave of TikTok videos promoting a Chase Bank ATM “hack” surfaced, encouraging users to deposit checks and withdraw more than the permitted amount, which some social media users referred to as “free money.” On this episode of Accounting ARC, Liz Mason, CPA; Byron Patrick, CPA.CITP, CGMA; and Donny Shimamoto, CPA.CITP, CGMA; delve into the consequences of this scheme and highlight the underlying need for financial literacy, particularly among younger generations.

Understanding the Chase ATM “Glitch”
Mason, CEO and founder of High Rock Accounting, explains that Chase’s algorithm appeared to allow users immediate access to a larger-than-normal amount when depositing checks. Typically, banks allow a maximum of $225 to be withdrawn immediately after deposit, in line with federal guidelines. However, the “glitch” meant some users could withdraw up to the full deposit amount, essentially lending themselves money that didn’t technically exist. The hosts illustrate that these deposits were ultimately returned due to insufficient funds, creating massive overdrafts and legal issues for individuals involved.

The Role of Financial Education
Patrick, CEO of VERIFYiQ and vice president of client success at The B3 Method Institute®, reflects on a concerning lack of financial understanding among younger generations, noting that some users seemed unaware of the basic concept of a bank balance or consequences of overdrafts. He explains, “There’s a real gap in financial literacy. Many people don’t understand that they’re borrowing against their own funds and will face repercussions when those checks bounce.” Mason adds that this incident points to a broader issue of uneducated users on social media, who can be easily misled into criminal activity without understanding the risks.

Social Media’s Influence on Financial Misconduct
The hosts also discuss social media’s impact on spreading financial misinformation, highlighting that social media platforms can perpetuate damaging schemes due to viral trends. Shimamoto, founder and managing director of IntrapriseTechKnowlogies LLC and founder and inspiration architect for the Center for Accounting Transformation, expresses concern that these platforms rarely emphasize the consequences of fraud, while platforms like TikTok can lead people to unwittingly commit crimes. “Our profession has a role in educating society about the risks,” Shimamoto states, advocating for more proactive financial education and debunking fraud myths before they become mainstream.

A Call to Action for the Accounting Profession
The episode closes with a call for accounting professionals to promote financial literacy actively. They encourage CPAs to reach out to schools and create programs to teach financial fundamentals to the public. Mason states, “If we as professionals don’t lead this effort, we’re leaving the door open for misinformation and future financial misconduct.”

By raising awareness and promoting sound financial practices, accountants can protect not only their clients but the wider public from falling for scams. The episode reminds us that, in an era where misinformation is one click away, financial literacy is not just a skill—it’s a critical defense against fraud.

Check out the latest episode of the Accounting ARC Podcast on the Center’s YouTube channel. 

Don’t miss an episode. Be sure to SUBSCRIBE below: