Gen Z TikTok Money Hack is a Crime

By Greg Collier

In recent months, social media platforms have become the go-to space for personal finance advice, especially for Gen Z. While some of this advice has helped many young adults better manage their money, a disturbing number of viral trends are pushing users toward illegal activities. One of the most recent trends involved a “free money” hack circulating on TikTok, which has led many Gen Z users into committing serious financial crimes without fully understanding the consequences.

The viral trend showed people depositing large checks into their bank accounts and then withdrawing cash before the checks cleared, claiming they had found a glitch in the system. Many Gen Z participants were drawn in by the promise of “free money” and shared videos celebrating their newfound wealth. However, this so-called glitch was nothing more than a form of check fraud known as “check kiting.”

Check kiting occurs when someone deposits a bad check and attempts to withdraw funds before the bank realizes the check is worthless. Far from being a clever hack, this is a federal crime with significant penalties, including hefty fines and up to 30 years in prison. What many participants failed to realize is that the checks would eventually bounce, leaving their accounts with negative balances, which would come back to haunt them.

Gen Z has grown up in an era where financial advice is often crowdsourced from social media. While there are plenty of useful tips out there, this overreliance on platforms like TikTok can expose young adults to misinformation or, worse, illegal practices masked as financial hacks. Gen Z, already facing unique financial pressures like student debt and rising living costs, may be more tempted to take risks in search of quick financial relief.

This isn’t the first time a viral trend has led to questionable decisions. Another trend currently affecting Gen Z is chargeback fraud, where individuals dispute legitimate credit card charges to receive a refund while keeping the goods they purchased. Often referred to as “friendly fraud” or “first-party fraud,” this practice may seem like an easy way to alleviate financial strain, but it’s still a crime. Many Gen Z consumers engaging in these practices may not realize how seriously financial institutions and law enforcement take these activities. The repercussions can include criminal charges, fines, and a damaged financial reputation that could make it difficult to open new bank accounts or obtain credit.

What these viral trends fail to mention is the long-term damage that comes from committing financial crimes. While the promise of quick cash might appeal to those struggling to make ends meet, these schemes often end with worse financial consequences than before. Banks have sophisticated systems for detecting fraud, and once caught, participants risk losing access to bank accounts, credit cards, and other financial services.

For Gen Z, who are just starting to build their financial independence, these setbacks can be especially harmful. A tarnished financial history can follow someone for years, making it more challenging to secure loans, rent apartments, or even find jobs that require credit checks.

While some TikTok finance trends have encouraged responsible money habits, like cash stuffing and saving techniques, others, like check fraud and chargeback fraud, are dangerous traps. Gen Z, like every generation, faces financial challenges, but there are better ways to manage them than by resorting to illegal activities.

Instead of chasing short-term gains that could lead to long-term consequences, it’s crucial for Gen Z to focus on sustainable financial practices. This could include side hustles to boost income, building emergency savings, or using legitimate tools like budgeting apps to manage expenses. These approaches may not offer the immediate relief that some viral trends promise, but they provide long-term security and help build a stable financial future.

As Gen Z continues to navigate the complexities of personal finance, it’s essential to approach viral trends with caution. Not every tip that promises quick cash is legitimate, and some can lead to serious legal trouble. Before following any financial advice found online, consider the long-term consequences, especially when the advice suggests bending or breaking the rules. Your financial reputation, personal freedom, and long-term well-being are worth far more than any fleeting viral trend.

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