JPMorgan Chase begins suing customers over viral ATM glitch to withdraw 'free' money
JPMorgan Chase has begun suing customers who stole hundreds of thousands of dollars by taking advantage of a technical glitch that allowed them to deposit fraudulent checks and then quickly withdraw large sums of cash from ATMs.
The "infinite money" glitch went viral on TikTok and other social media platforms in late August, showing people depositing checks and then immediately withdrawing "free" money before the check cleared.
On Monday, the bank filed lawsuits in three federal courts against two people and two businesses who collectively withdrew almost $662,000.
“Fraud is a crime that impacts everyone and undermines trust in the banking system,” Chase spokesperson Drew Pusateri said in a statement. “We’re pursuing these cases and actively cooperating with law enforcement to make sure if someone is committing fraud against Chase and its customers, they’re held accountable.”
Lawsuits in California, Florida, Texas
One case, filed in Houston, alleges that a "masked man" deposited a check for $335,000 into the defendant's bank account at an ATM. The man then immediately began withdrawing money − a total of $290,947.39 − before the check was returned as counterfeit.
In a lawsuit filed in the Central District of California, JPMorgan Chase alleges that "on August 27 and August 28, 2024, an individual deposited two fraudulent checks" totaling more than $116,063.55 in the defendant's bank account, who then promptly transferred more than $90,000 out of the account.
Two separate cases were filed in Miami against businesses named In and Out Appliances and Riskboss Musiq. Those businesses are alleged to owe $138,680.91 and $141,295.84, respectively.
In each of the lawsuits, JPMorgan Chase says that it has contacted the defendants requesting that they, "pay the amount of any overdraft along with any fees that apply," but that the defendants have failed to do so.
"While fraud methods have evolved over time, the core intent to exploit and deceive remains unchanged," the bank said in all four lawsuits.
Max Hauptman is a Trending Reporter for Paste BN. He can be reached at MHauptman@gannett.com