A viral cash-out scam linked to TikTok has drained $17 million from New York ATMs in under three days, exploiting city-issued youth jobs program cards, according to The New York Times.
New York’s Department of Youth and Community Development, which oversees the city’s Summer Youth Employment Program (SYEP), reported that payment cards for approximately 30,000 unbanked participants ages 14 to 24 were compromised. Intended to restrict access to modest weekly earnings, the cards instead allowed for unauthorized withdrawals in increments reaching $10,000 to $40,000 per ATM, some totaling $43,000 at a single location.
The breach began July 11 and was halted by the morning of July 14, after ATM operators flagged anomalous cash-outs and authorities intervened. Cards were sometimes sold for $1,000 each, with activity fueled by social media videos encouraging abuse. The city asserts that taxpayer funds were not directly lost, but responsibility for the $17 million remains under investigation, according to the Times…