$17M ATM Snafu Scams SYEP Kids

NYC’s Summer Youth Employment Program (SYEP) is the nation’s largest youth employment program, connecting NYC youth between the ages of 14 and 24 with career exploration opportunities and paid work experiences each summer.

From July 11–July 13, debit cards assigned to SYEP participants had the ability to unlock a somewhat unlimited amount of money via ATMs. This glitch was revealed on TikTok and soon began to trend. During those three days $17M was withdrawn. 

Debit cards are assigned to SYEP participants who don’t have bank accounts, a system that began in 2003. The cards are set up to limit a withdrawal transaction to $200. However, this summer the cards didn’t limit the number of transactions. One ATM reportedly doled over $40K to one card through hundreds of transactions.  Some TikTokers posted videos inviting SYEP participants with debit cards to sell their cards to them. Other TikTok influencers were warning the kids this was a scam.

The New York Times, the first to report on the story, published this statement from Mark Zustovich, chief public information officer for NYC Department of Youth and Community Development,  “We are deeply disturbed by scammers preying on our participants just as they started their work assignments to support themselves and their families.” Zustovich communicated taxpayer funds were not lost to this scam but didn’t convey who would pay the cost of this loss. 

SYEP has around 100K participants this year. Up until this scam, payments were made in two ways: direct deposit for those who provided bank account information and debit cards for those who didn’t. 30K debit cards were issued this summer.

After the problem was discovered payroll for those with debit cards was delayed as the system was reconfigured. This became a concerning inconvenience to many, who worried they wouldn’t get their pay. These participants were advised to provide bank account information for payments via direct deposit or they would receive payment by paper check.  As it takes time to process a check, the latter would mean payments would take longer to receive than direct deposit.

In addition to providing participants with job experience, SYEP may be their first experience with utilizing money management skills. To this end, SYEP has created flyers to warn participants about scams and their repercussions and to never share their payroll card and personal information with anyone.

“For nearly 60 years, SYEP has been a lifeline for young New Yorkers. It’s often their first job, their first step toward economic independence, and their first encounter with the financial system. It is the largest program of its kind in the nation and has positively impacted hundreds of thousands of youth, especially those from communities historically excluded from economic mobility,” said Gregory J. Morris, CEO of the New York City Employment and Training Coalition.