| Are they really asleep at the switch? A little bit, I guess. An afterhours deposit probably shouldn't count as day 1 on a standard hold. But deposits don't clear instantly, and banks routinely allow customers to access deposits or parts of deposits before they clear. Kiting checks is likely to result in serious consequences, and KYC means the bank has strong identification of their customers. There's a good chance of criminal prosecution and an even higher chance of getting kicked out of banking. A negative chexsystems report makes it really hard to engage with the banking system, which makes life a whole lot more expensive. But --- how much cash are people even getting out of this? Since the bank holiday is noted, I assume just ATM limits, which are usually around or under $1000/day (although I see an article that says $3000/day from chase operated ATMs). That's enough to get in serious trouble, but not enough to start a new life. Doesn't seem worth it. Most banks are set to 'fail open' during maintenance as well. If their systems are offline, you may be able to make repeated withdrawals from ATMs to go beyond your daily limit, and beyond your balance. This isn't being asleep at the wheel either; it's prioritizing availability over accuracy. In a high trust society, most account holders won't intentionally seek this out, and the few exceptions can expect major consequences. |
Over 20 years ago, I bought and sold many items through online forums, and checks were common forms of payment. The prevailing advice was to wait a week or so after deposit for the check to "clear", meaning it was valid. Most young people have never used checks and have never been given this advice.