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8 Tips to Protect Yourself Against the “Infinite Money Glitch” Scam

In recent months, a term called the “infinite money glitch” has been circulating on social media, capturing the attention of many. This term refers to schemes that exploit weaknesses in financial systems, allowing individuals to fraudulently withdraw more money than they have. The Financial Industry Regulatory Authority (FINRA) has noted an increase in these activities and has provided guidance to help consumers protect themselves from falling victim to such scams.

What is the “Infinite Money Glitch”?

This a fraudulent activity where individuals exploit a supposed technical glitch in a banking system, usually involving depositing fake checks or manipulating transactions to withdraw large sums of money that they don’t actually have creating the illusion of “infinite” funds; this is considered a serious crime and banks actively pursue legal action against perpetrators who attempt it.

The “infinite money glitch” became widely known in September 2024, following two significant incidents:

  1. Bank Technical Error: Social media platforms such as X (formerly Twitter) and TikTok were flooded with posts about a technical error at a major bank. This glitch allowed customers to withdraw funds that exceeded their account balances before the deposited checks were settled. This practice, known as check kiting, led to thousands of people attempting to exploit the glitch before the bank could fix the error.
  2. Broker-Dealer Incident: Shortly after the bank incident, a similar glitch was identified at a broker-dealer. Unsettled funds from mobile check deposits into a cash-management account (CMA) could be prematurely withdrawn or spent, leading to a surge in fraudulent activities promoted on TikTok and Telegram.

You may be interested in reading our blog, “Say Yes” Scam: What You Need to Know to Stay Safe

How to Protect Yourself

To safeguard your finances and personal information from such scams, consider the following strategies:

  1. Stay Informed: Be aware of new and emerging scams by regularly checking trusted news sources and consumer protection websites. Check out the blog, 5 Latest Scams You Need to Know About Now
  2. Monitor Your Accounts: Regularly review your bank and financial account statements for any unusual activity or unauthorized transactions.
  3. Be Skeptical of Easy Money: Be wary of social media posts or messages promising quick and easy ways to make money. If something sounds too good to be true, it probably is.
  4. Educate Yourself on Common Scams: Familiarize yourself with common financial scams, such as check kiting, check washing, romance scams, online holiday shopping scams, and other fraudulent schemes.
  5. Report Suspicious Activity: If you notice any suspicious activity on your accounts or come across potential scams, report it to your bank or financial institution immediately.
  6. Use Secure Payment Methods: Whenever possible, use more secure payment methods like wire transfers or ACH transfers instead of checks, which can be more susceptible to fraud.
  7. Protect Your Personal Information: Avoid sharing your bank account details, social security number, or other sensitive information with unknown or untrusted sources.
  8. Stay Updated with Fraud Prevention Tips: Follow consumer protection agencies and financial institutions on social media or subscribe to their newsletters for the latest fraud prevention tips and updates.

You may be interested in reading our blog, Cybersecurity Awareness for Seniors: Protecting Your Financial Information

What to Do If You Fall Victim

If you suspect that you have fallen victim to a financial scam or fraud, take immediate action:

  1. Contact Your Bank: Notify your bank or financial institution as soon as possible to report the fraud and take steps to secure your accounts.
  2. Report to Authorities: File a complaint with the relevant authorities, such as the FBI’s Internet Crime Complaint Center or the Federal Trade Commission (FTC).
  3. Monitor Your Credit: Keep a close eye on your credit reports for any unusual activity or signs of identity theft.
  4. Seek Assistance: Consider reaching out to consumer protection organizations or legal advisors for further assistance and guidance.

Want more? Read our blog How to Protect Yourself from Scams

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