Federal Government Squanders $17 Million in a Span of Three Days Due to a Viral ATM Malfunction Connected to a Youth Employment Program, as per a Recent Report
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Recent events have shed light on a concerning incident that took place in July 2025. An ATM scam tied to the New York City Summer Youth Employment Program (SYEP) resulted in approximately $17 million being fraudulently withdrawn from payment cards issued to youth participants aged 14 to 24, many of whom were unbanked individuals.
The scam, which unfolded between July 11 and July 14, exploited a vulnerability in the program’s payment cards, allowing withdrawals far exceeding the legitimate weekly earnings. Some ATMs dispensed between $10,000 to $40,000 per transaction. The fraudulent activity was amplified by viral TikTok videos encouraging misuse, and some youth sold their compromised cards for about $1,000 each.
The breach was stopped after ATM operators noticed abnormal activity, and authorities intervened. The New York City Department of Youth and Community Development and the NYPD Financial Crimes Task Force are investigating the incident, with the responsibility for covering the $17 million loss still unclear. The city maintains that taxpayer funds were not directly lost, but participants may have been coerced into participating in the scam.
Meanwhile, in other financial news, US Lawmakers have issued subpoenas to JPMorgan Chase CEO Jamie Dimon and Bank of America Boss Brian Moynihan over their role in a Tesla supplier's IPO. Elsewhere, a bank insider drained $195,000 from churches, a kids museum, and customers, faking his own death to avoid recovery of incriminating evidence, according to the US Department of Justice.
In the crypto sphere, Arthur Hayes, a known figure in the crypto world, is backing an altcoin that is outpacing the crypto market following a new partnership with Anchorage Digital. Additionally, a crypto analytics firm has reported that ancient Bitcoin (BTC) is springing to life, potentially indicating sell-side pressure.
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- The cryptocurrency industry has seen a significant event with Arthur Hayes, a known figure, backing an altcoin, which is outperforming the market following a new partnership with Anchorage Digital.
- In the banking and insurance sector, a bank insider allegedly drained $195,000 from churches, a kids museum, and customers by forging his own death certificate to avoid recovery of incriminating evidence, according to the US Department of Justice.
- Despite concerns in traditional finance, such as the ATM scam observed in the New York City Summer Youth Employment Program, the blockchain technology continues to make waves in the cryptocurrency industry, with an analytics firm reporting that ancient Bitcoin is becoming active, potentially indicating sell-side pressure.
