The Chase glitch has opened the eyes of fine citizens to the world of bank fraud

Backstory: Fidelity Investments has some account called a Cash Management Account. It's a hybrid of a brokerage account (account you buy stocks) and a checking account (can write checks, debit card, bill pay). It's been around for a while, but it became a pretty popular tool in the internet personal finance sector because the setup let you earn ~5% of your money at all times. But it's not a real checking account (important).

A few weeks ago, the Chase glitch occurred. But a glitch allowed to deposit a check (stolen or just their own), and instead of putting a hold and clearing it over a few days they got access to the funds immediately. So they would deposit a check for let's say $5,000, and then instantly withdraw the money. Obviously a super r-slurred thing to do with your account, but .

This was quickly fixed, but it caused some to wonder. What if other institutions did the same? Well they do. Banks have been operating on the clear first and ask questions later premise for a while, and brokerages even more so. This has brought to the limelight a type of fraud that's been around for a while. It's apparently coordinated through Telegram, and abuses mobile deposits not ATMs.

This leads into the Fidelity boyz:

It be rainin'

Fidelity was a nice target too since their mobile deposit limit was $100,000. Fidelity last week caught onto this and then decided to implement some combination of these measures onto most of the accounts:

• Reducing mobile deposit to $1,000

• Put 15 business day holds on mobile deposits and ACHs

• Cancel peoples billpays

• Randomly locking accounts

As with most things like this, it's hard to get the true story because you'll see a lot of posts where someone is depositing 30 checks a week and needs to transfer all the money instantly to 5 different bank accounts and then ghost

you when you ask what could they possibly be doing to justify it.

/r/fidelityinvestments mods setup a megathread addressing this and pinned it in the sub. They then answered basically no questions, and then unpinned it

Yep. I hope people look at these post before they think about opening an account with Fidelity. In my case they are holding my funds till 9th Oct (for deposits made on 16th Sept) . I had to make alternative arrangement to take care of my expenses.

The the worst part is that reddit is allowing Fidelity's moderators to delete posts on this issues and redirect us to this "megathread" which is more like a trash bin. Sorry if I sound frustrated as I really am.....

I recently transferred about $3000 into my Fidelity Cash Management account from US Bank on 9/15, and after 4 days, the funds were still unavailable. When I called to ask why, they explained that it was because I had pulled the funds from Fidelity rather than pushed them from US Bank.

They gave me a vague excuse about "industry trends" and "protecting Fidelity accounts" supposedly justifying the excessive hold. What makes this even more frustrating is that customer support admitted they never informed me about this extended hold upfront, and after reviewing Fidelity's terms, I wasn't able to find mention of such a long hold for this type of transaction.

Now, they've told me the funds will be held until at least 10/8. Even after verifying my identity, they won't release the money. While I can still use the money for things like buying stocks and bonds within Fidelity, the lack of transparency and delay in giving me full access is infuriating.

The more I see on this subreddit the more I become convinced the MegaThead is nothing more than a Catch & Kill effort

Nah you're just mad

Hello, my entire Bill Pay was deleted a couple of weeks ago. I was notified by email with no explanation. I have called Fidelity, and they just say that they have been looking into it and they will call me. It's been a week since the my Bill Pay disappeared, and I want it to pay bills as I always have. Help!

Happened last week to me. In my case I deposited a large personal check. The funds had cleared but they still restricted my account as they thought the check was fraudulent or that I wrote it (it was from my mother) they called my mother separately to confirm she wrote the check.

All very absurd but once they lifted the restrictions bill pay returned that same day.

Doctorofcredit thread. A lot of these people were locked since what they do looks pretty similar to money laundering anyway.

With all this backlash, it does make sense that Fidelity is losing some valuable customers.