Posts falsely claim Wells Fargo limits cash withdrawals

"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."

Image

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.