Card cracking is one form of crime that is gaining in popularity on the streets. More and more, in the news, we hear about young men and women going down for bank and credit card fraud after swiping cards for big cash or luxury items. Has all the scamming forced banks to switch up the way they operate?
In a recent report by Money Magazine, it was revealed that JP Morgan Chase banks have lowered the ATM limit to $1,000 per day for non-customers. This move was made due to growing concerns over “criminal activity.” The report reads, “Apparently, the bank has grown concerned that people who recently discovered the machines issued $100 bills have been withdrawing tens of thousands of dollars at a time.”
Card cracking has surely been a criminal activity that has affected JP Morgan Chase. The financial institution was named alongside others (i.e. Citibank, U.S. Bank, Bank of America) in the massive 2014 fraud case against Bandman Kevo and The RACK Boyz. The FBI reports:
According to the federal charging documents, after schemers obtained a debit card and PIN for a bank customer’s account, they manufactured or purchased one or more counterfeit checks to deposit into the account. The bogus checks often contained legitimate bank account and routing numbers that belonged to the accounts of actual businesses. Certain individuals developed a reputation for “making paper,” that is, making, printing, and selling counterfeit checks. The schemers then deposited, or recruited someone else to deposit, the counterfeit checks into the third party’s bank account, typically via an ATM transaction. The schemers then waited for the bank to credit the purported funds from the counterfeit check, usually within hours of the deposit, after which they often attempted a small ATM withdrawal of $100 or more to determine whether an account was credited with the advanced funds. If the transaction succeeded, schemers went to an ATM, a currency exchange, or point-of-sale terminal at a retail store to withdraw or spend the remaining funds that the bank advanced to the third-party account.
Though that scheme involved bank customers (who are not affected by the new JP Morgan Chase policy) the bank certainly had to take notice. The losses had to have played a role in the bank taking measures to protect itself.