TikTok Scam Drains $17 Million From New York ATMs

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.

Officials say it is unclear how the exploit occurred or who orchestrated the withdrawals. Many cardholders, for whom this was their first formal job and banking experience, were reportedly targeted by criminal groups. Financial literacy training was part of the program, and warnings were issued by the city after the fact. As investigations continue, network operators are reassessing controls for youth- and government-related card programs.

“We’re making bread, we’re printing money right now,” one man said in a TikTok video described by The New York Times. Referring to the jobs program, he added: “If you work S.Y.E.P., hit me up.”

ATM fraud has been addressed several times so far this year. According to ATM Marketplace: “Many ATM networks still rely on legacy hardware and software that may not support the latest security features or compliance standards. As technology advances, these outdated systems become more vulnerable to cyberattacks, malware and operational failures. Adding to this challenge is an increasing need to move towards cloud-based systems while maintaining compliance and security. Cloud migrations have been slow due to the need to maintain compliance when hosting data in the cloud. In 2025, consolidating equipment and upgrading these legacy systems will be critical to maintaining security and operational efficiency.”

PYMNTS last covered ATMs in March by detailing a paper published by NCR Atleos and Datos Insights, focused on the concept of improving ATM operations through ATM as a Service (ATMaaS).

“The evolution of ATM management is reaching a critical inflection point,” NCR Atleos said in a news release. “While ATMs remain a vital channel for financial institutions, the increasing complexity of technology, security requirements, and customer expectations is forcing financial institutions to re-evaluate their operating models.”

According to the release, the paper includes the “ATM Continuum Index,” a framework to help banks and credit unions analyze their ATM operations and find ways to evolve alongside customer needs and technological capabilities.