This isn’t new. It’s “check kiting”. Apparently, a software glitch made this easy to do with just your own bank account but it’s straightforward to stop.
Exactly, but like everything old that the lastest generation thinks is a “new and exciting/fearful thing” that somehow, some evil genius cooked up and/or shared on tickytocky or on elongated muskie’s spam network, it is just the lasted reincarnation of the age-old scam/spam/grifter playbook.
FWIW, below your response, I just added an admittedly “long winded” recap of my 30+ yrs of working for the worlds largest financial institutions on bldg, maintaining and safeguarding the worlds financial data supply chain frameworks…
FWIW: I’ve worked in the bkg/finsvcs/fintech industry for +30 yrs, focused on the data supply chain of financial flows and the complex regulatory and compliance frameworks employed to both establish and maintain global continuity and stability in same.
In particular, I worked for JPMC, from 2000 to 2012, in their internal mgmt consulting org (part of enterprise-wide Corp Global program office, in the Global Tech&Ops LOB) and specifically, I worked across the Treasury and Securities Services and Retail LoBs, related to the development of various financial deposit and payment systems/services, and new/existing govt central bank policies, protocols and R&C frameworks.
My work was focused on global payments, across the USofA, UK, EU, Nordics, Soviet Baltic republics, China and the Middle East. Our various teams worked to develop and manage most of the world’s standardized payment and funds-flow frameworks.
Just for the USofA, there are significant process and technology safeguards in place to prevent payment manipulations such as described in this episode.
For example: I can go to my local JPMorgan Chase ATM and deposit a $10,000 check from my wife’s account (or have her use any of a number of funds transfer apps) but in this example, using the in-ATM image-OCR scanner functionality that turns said image of the paper checks (aka”draft”) acct routing and transit #s into an ACH transaction, which, depending upon the paying institution and any clearinghouse related protocols, the funds maybe be partially available immediately for the depositor (me) to access (say immediate availability of 25%?), or they maybe be entirely delayed per Regulation CC, the Federal Reserve’s “Availability of Funds and Collection of Checks/Payment Deposits) and its subsequent revisions thereof.
Likewise, when using a C2C, C2B or B2B payment application like “quick pay”, venmo, etc, the paying (payor) institution (aka your bank) may/may not have a direct FedReserve clearing relationship w/ your payee, thus requiring that they (your bank) actually send the payee a paper check, thus introducing a likely 5 biz working day delay between when you actually used your bill-pay app to make the payment and when said payment is actually presented to your payee…
My point in all of this procedure and process recap, is that even way back in the early 2000-2012s, there was significant and substantial regulatory controls in place to identify and prevent fraud and malicious intents as described herein… just sayin
Pretty much all banks immediately credit up to a dollar limit all checks remotely deposited. Even new accounts get a nominal immediate credit limit. Thr longer you have been with the bank the higher the limit. Mine is more than 5k.
My cynicism says Chase published this "hack," then patched it before folk got the news it's now broke. Meaning fixed, and earning them interest on bunches of $5 deposits.
I said it before that every once in a while United 24 contact me and I tell them to go take a hike. It would be nice if I had that money, but I am making ends between speeches and Substack
This isn’t new. It’s “check kiting”. Apparently, a software glitch made this easy to do with just your own bank account but it’s straightforward to stop.
Exactly, but like everything old that the lastest generation thinks is a “new and exciting/fearful thing” that somehow, some evil genius cooked up and/or shared on tickytocky or on elongated muskie’s spam network, it is just the lasted reincarnation of the age-old scam/spam/grifter playbook.
FWIW, below your response, I just added an admittedly “long winded” recap of my 30+ yrs of working for the worlds largest financial institutions on bldg, maintaining and safeguarding the worlds financial data supply chain frameworks…
FWIW: I’ve worked in the bkg/finsvcs/fintech industry for +30 yrs, focused on the data supply chain of financial flows and the complex regulatory and compliance frameworks employed to both establish and maintain global continuity and stability in same.
In particular, I worked for JPMC, from 2000 to 2012, in their internal mgmt consulting org (part of enterprise-wide Corp Global program office, in the Global Tech&Ops LOB) and specifically, I worked across the Treasury and Securities Services and Retail LoBs, related to the development of various financial deposit and payment systems/services, and new/existing govt central bank policies, protocols and R&C frameworks.
My work was focused on global payments, across the USofA, UK, EU, Nordics, Soviet Baltic republics, China and the Middle East. Our various teams worked to develop and manage most of the world’s standardized payment and funds-flow frameworks.
Just for the USofA, there are significant process and technology safeguards in place to prevent payment manipulations such as described in this episode.
For example: I can go to my local JPMorgan Chase ATM and deposit a $10,000 check from my wife’s account (or have her use any of a number of funds transfer apps) but in this example, using the in-ATM image-OCR scanner functionality that turns said image of the paper checks (aka”draft”) acct routing and transit #s into an ACH transaction, which, depending upon the paying institution and any clearinghouse related protocols, the funds maybe be partially available immediately for the depositor (me) to access (say immediate availability of 25%?), or they maybe be entirely delayed per Regulation CC, the Federal Reserve’s “Availability of Funds and Collection of Checks/Payment Deposits) and its subsequent revisions thereof.
Likewise, when using a C2C, C2B or B2B payment application like “quick pay”, venmo, etc, the paying (payor) institution (aka your bank) may/may not have a direct FedReserve clearing relationship w/ your payee, thus requiring that they (your bank) actually send the payee a paper check, thus introducing a likely 5 biz working day delay between when you actually used your bill-pay app to make the payment and when said payment is actually presented to your payee…
My point in all of this procedure and process recap, is that even way back in the early 2000-2012s, there was significant and substantial regulatory controls in place to identify and prevent fraud and malicious intents as described herein… just sayin
That’s pretty interesting
You sir are not just an analytical warrior, y’all are seemingly also a well versed diplomat lol
Pretty much all banks immediately credit up to a dollar limit all checks remotely deposited. Even new accounts get a nominal immediate credit limit. Thr longer you have been with the bank the higher the limit. Mine is more than 5k.
Yup
Feel better bro
My cynicism says Chase published this "hack," then patched it before folk got the news it's now broke. Meaning fixed, and earning them interest on bunches of $5 deposits.
This isn’t a real issue (aka false news) and I’ve share how/why in my response In this section
My cynicism didn't get a nap today and he's cranky.
OMG Ryan, I hope you feel better..!! You are a national resource, take good care of yourself..
@Ryan: "YouTube doesn't pay the bills, speeches pay the bills."
Unless you're Tim Pool and you get that sweet, sweet, RT Putin cash at $100K per video.
Then YouTube and Russia DO pay the bills.
I said it before that every once in a while United 24 contact me and I tell them to go take a hike. It would be nice if I had that money, but I am making ends between speeches and Substack