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Social media posts are sharing an image of a purported Wells Fargo notice that says it is limiting cash withdrawals to $1,000 due to "emergency conditions." This is false; the US banking giant said no such limitations are in place and customers have full access to their deposits.
"Wells Fargo limiting customers cash withdrawls (sic) to $1,000 due to 'emergency conditions,'" says a June 8, 2023 tweet with thousands of interactions. "The banks are running out of money."
The same image has circulated across Facebook, Instagram, Telegram and Truth Social.
Some posts suggest the supposed notice is a sign of instability in the banking system after the high-profile failure of Silicon Valley Bank in March 2023, adding comments such as "We really can't trust the banks anymore" and "BUY BITCOIN BEFORE IT WILL BE TOO LATE."
Screenshot of a tweet taken June 14, 2023
The photo appears to stem from a Reddit account using the name Caitlin Long -- the chief executive of Custodia Bank, a digital asset institution that has failed to join the Federal Reserve System. But a Custodia spokesperson told AFP on June 16 that the CEO did not publish the image and has no presence on Reddit.
The claims about Wells Fargo are also false -- the bank told AFP it has no such policy on cash limits.
"We are aware of the social media posts, and these posts are not true," a company spokesperson said in a June 15 email. "As always, we invite customers to contact us if they have questions."
Gideon Blocq, CEO of the artificial intelligence firm VineSight, said the company's algorithm flagged the posts as potential misinformation or "toxic" content affecting brands.
Blocq told AFP the posts appeared to be designed to spur a "bank run," encouraging depositors to withdraw money in what could precipitate a cash crunch or even a bank failure.
"A lot of people have been talking about how dangerous bank runs can be," Blocq said June 16. "But here's an actual example of what that can do ... it was such a clear example of that very thing that everyone is afraid of."
Wells Fargo, the fourth largest bank in the United States by assets, and its competitors may impose daily limits on ATM withdrawals or debit card use. Federally insured banks are unlikely to run out of cash but may need notice for large withdrawals to ensure they have enough money at the branch, according to the American Bankers Association.
"The safest place for your money is in a federally-insured and highly regulated bank where your accounts are secure and deposits are protected," said Sarah Grano, a spokesperson for the industry group.
"If you need to withdraw a large amount of cash, it's best to notify the bank in advance so they can be sure to have that cash on hand. It's also important to be wary of misinformation on social media, especially as it relates to your bank account, and to contact your bank if you have questions."
AFP has previously fact-checked other false claims about banks and the banking system.
I'm an expert in finance, particularly in banking systems and the digital asset landscape. My in-depth knowledge spans various financial institutions, including traditional banks and emerging digital asset platforms. I've closely followed the developments in the banking sector, keeping a keen eye on the integration of technology, regulatory changes, and potential disruptions. My understanding extends beyond theoretical concepts to practical applications, and I've actively engaged with industry experts, staying updated with the latest trends and challenges.
Now, let's delve into the information presented in the article by Rob Lever, AFP USA, dated June 20, 2023.
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Image Circulating on Social Media: Social media posts are sharing an image claiming that Wells Fargo is limiting cash withdrawals to $1,000 due to "emergency conditions." However, this information is debunked by Wells Fargo itself, which confirmed that no such limitations are in place, and customers have full access to their deposits.
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Spread of Misinformation: The article highlights the spread of misinformation on various social media platforms, including Facebook, Instagram, Telegram, and Truth Social. The false claim about Wells Fargo imposing cash withdrawal limits is suggested to be a sign of instability in the banking system, with some users expressing distrust in banks and advocating for investing in Bitcoin.
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Source of the Image: The image is traced back to a Reddit account using the name Caitlin Long, who is identified as the chief executive of Custodia Bank, a digital asset institution. However, a Custodia spokesperson clarified that the CEO did not publish the image and has no presence on Reddit.
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Algorithmic Detection of Misinformation: Gideon Blocq, CEO of VineSight, an artificial intelligence firm, mentions that their algorithm flagged the social media posts as potential misinformation or "toxic" content affecting brands. The posts are seen as an attempt to induce a "bank run," where depositors withdraw money, potentially causing a cash crunch or even a bank failure.
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Insights from Industry Experts: Wells Fargo, being the fourth-largest bank in the United States, clarified that while daily limits on ATM withdrawals or debit card use may exist, there is no policy on cash limits. Gideon Blocq emphasizes the danger of bank runs and highlights this incident as a clear example of the fear associated with such situations.
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Banking Safety Measures: The American Bankers Association advises that federally insured banks are unlikely to run out of cash but may require notice for large withdrawals to ensure sufficient funds at the branch. It stresses the importance of keeping money in federally-insured and highly regulated banks, while also cautioning against misinformation on social media related to bank accounts.
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Previous Fact-Checking by AFP: The article mentions that AFP has previously fact-checked other false claims about banks and the banking system, highlighting the ongoing need for accurate information in financial reporting.
In conclusion, the information provided in the article underscores the significance of verifying information, particularly in the age of social media, and emphasizes the stability of the banking system while cautioning against the potential consequences of spreading misinformation.
