In less than 72 hours, approximately US$17 million was withdrawn from cash machines across New York City in a scam linked to TikTok and a city-run youth employment programme, according to two law enforcement officials familiar with the investigation.

As reported by The New York Times, the funds were illicitly accessed using payment cards issued to participants of the Summer Youth Employment Programme (SYEP).

These cards were meant to provide modest weekly wages, typically just a few hundred dollars, to thousands of 14 to 24 year olds who did not have bank accounts.

Instead, users discovered they could withdraw significantly larger sums, with some machines dispensing US$10,000, US$20,000 or even US$40,000 per card.

Around 30,000 cards had been issued for the 2025 programme.

Between 11 and 13 July, these cards were used fraudulently, prompting investigations by the NYPD’s Financial Crimes Task Force and the city’s Department of Youth and Community Development (DYCD), which oversees the programme.

According to the officials, some participants were selling their cards for US$1,000 each.

Social media posts on TikTok and Instagram during the same period showed both teenagers and adults boasting about the scam and encouraging others to get involved.

“We’re making bread, we’re printing money right now,”

said one man in a TikTok video.

“If you work SYEP, hit me up.”

Other users warned their followers about falling for the so-called “SYEP scam.”

In a statement, DYCD spokesperson Mark Zustovich said the young people involved were being taken advantage of.

“We are deeply disturbed by scammers preying on our participants just as they started their work assignments to support themselves and their families,”

he said.

He added that no taxpayer funds had been lost. However, it remains unclear who will ultimately bear the cost of the missing funds.

The full scope of the breach, including how it began, how many cards and machines were involved, and who exactly made the withdrawals, has not been disclosed.

Zustovich declined to comment further on those details or confirm the total amount stolen.

SYEP is the largest programme of its kind in the US, offering work experience to 100,000 young people each year, many from disadvantaged backgrounds.

Participants aged 16 to 24 earn the city’s minimum wage of US$16.50 per hour for up to 25 hours a week, while younger teens are paid less.

Those without bank accounts receive prepaid cards to access their earnings.

Officials said the scam began on a Friday (July 25), which marked the first payday for many in the programme.

That evening, ATM operators began receiving reports of unusual activity.

“Students or other people who had the card just started going to ATMs and pulling out unlimited loads of cash, 10, 15, 20,000 dollars at a time,”

said Youssef Mubarez, Chief Operating Officer of ATM World Corp.

He noted that because of withdrawal limits, the money was taken out US$200 at a time. One of their machines alone saw US$43,000 withdrawn.

Withdrawals surged again on Saturday night.

By early Sunday morning, the DYCD had deactivated all cards linked to the scam.

Zustovich said that, as in previous years, the programme included a financial literacy component.

The department also posted warnings on Instagram cautioning participants to protect their personal information, but these were only published on 14 July, a day after the scam had already ended.

Featured image credit: Edited by Fintech News America, based on image by Eduardo Soares via Freepik