The Viral Social Media Challenge That’s Putting People’s Money at Risk — What to Watch For

Social media feeds are flooded with money tips—some helpful, some harmless, and some that could land you in federal prison. The latest viral “hack” falls squarely in that last category, according to the FTC.

Some videos and posts claim that you can write a check for more money than you have in your account, deposit it into another account, and quickly withdraw the cash before the bank catches on. That meets the classic definition of the crime of check kiting, a form of bank fraud.

“What [a social media] video or post might not tell you is that [it] could leave you on the hook for paying back all the money, kicked out of your bank, and in serious legal trouble for bank fraud,” the FTC noted in a recent consumer alert.

The Fraud Behind the Fad

The scheme exploits what’s known as the “float period,” the time between when you deposit a check and when the bank confirms that the funds are in the account from which it is drawn. During that window, you might see your balance increase, even though the money hasn’t actually cleared.

Under federal Regulation CC, banks must make at least $275 of a check deposit available by the next business day, while the rest is placed on hold until the check clears, typically within a few days. That small amount is only a temporary credit, meant to give consumers access to some funds they might need while a check processes.

In 2024, a temporary technical issue caused certain JPMorgan Chase & Co. (JPM) ATMs to fail to apply normal limits on how much was made available from a deposited check for withdrawals, allowing some users to withdraw massive sums before their checks cleared.

According to TikTok videos reviewed by Investopedia, participants are still being told to write themselves large checks from accounts with insufficient funds, deposit them into another account, and then withdraw the money before the original check bounces. While some videos on social media still suggest taking advantage of the JP Morgan ATM glitch, which has since been fixed, others discuss using the same idea on a smaller scale to withdraw only the immediately available $275, suggesting wrongly that it’s free cash.

The Consequences for ‘Fraud, Plain and Simple’

As the FTC warned in a recent consumer alert, the appearance of funds in your account doesn’t mean they’re really yours to spend. Using the “float” window to access money you wouldn’t have if the check cleared instantaneously—no matter the amount—isn’t a loophole. It’s what JPMorgan notes is “fraud, plain and simple.”

In the year since the social media trend first went viral, a spokesperson for JPMorgan told Investopedia that the bank had filed 10 federal lawsuits against clients who allegedly followed the instructions on social media. It has also sent out more than 1,000 reimbursement demand letters to individuals it believes were involved in these schemes.

Beyond civil liability, those engaging in the practice face the potential for both state and federal criminal charges. Banks can also close your accounts and flag your name in national databases, making it extremely difficult to open accounts at other institutions in the future.