Washington, D.C. The Federal Trade Commission has identified a fast-cash money hack that is circulating on social media as an unlawful scheme that might result in criminal penalties, significant fines, and a prohibition from creating bank accounts for those involved.
The practice encourages people to write checks for more than they have, deposit the money into another account, then take the money out before the check clears. It is sometimes portrayed in brief movies as a creative way to transfer money between personal accounts. Although check kiting is a prevalent type of bank fraud, its proponents portray it as a harmless activity.
Once the bad check bounces, banks swiftly reverse the deposits, leaving customers liable for the entire amount plus any fees, according to financial experts. According to the FTC, violators risk having their accounts canceled, being prohibited from opening new ones, and maybe facing legal action.
Authorities advise consumers to do their homework before acting on financial advice, particularly if it comes from unidentified or unreliable sources. The FTC advised looking up the trend’s name combined with keywords like fraud or scam, talking to family members or friends you can trust, and checking reliable sources.
Stories by
Kaylee Remington
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