JPMorgan Chase Sues More Customers Over ‘Infinite Money’ ATM Glitch That Went Viral On TikTok
JPMorgan Chase is cracking down on account holders it claims defrauded the bank by exploiting a viral technical loophole known as the “infinite money glitch,” which gained widespread attention on TikTok last year.
The nation’s largest bank, under the leadership of Jamie Dimon, initially began filing legal action in October against customers who allegedly abused the system flaw in August, with some reportedly walking away with tens or even hundreds of thousands of dollars.
The glitch in question enabled users to deposit large checks and immediately access the full amount, even though the checks would eventually be returned for insufficient funds.
Now, JPMorgan is broadening its legal campaign by targeting those accused of taking less than $75,000. The bank has recently submitted new lawsuits across several U.S. jurisdictions, according to a recent report.
One such lawsuit, cited by CNBC, alleges: “On August 29, 2024, a masked man deposited a check in Defendant’s Chase bank account in the amount of $73,000.00.”
CNBC reports that while the check was rejected six days later, the individual managed to withdraw $82,500 in multiple transactions at two different Chase branches before the funds were flagged.
According to the same lawsuit, the customer still owes Chase $57,847.69 and has not responded to multiple demands from the bank to return the money.
Additional fraud suits have been launched in courts located in Miami, the Bronx, and two counties in Texas, CNBC added.
A Chase spokesperson commented, “We’re still investigating cases of fraud and cooperating with law enforcement—and we’ll do that for as long as it takes to hold fraudsters accountable.”
A person familiar with the situation told The NY Post that Chase has also issued repayment demand letters to approximately 1,000 individuals since October.
Though most banks do allow limited access to deposited check funds before they officially clear, deliberately exploiting this process is considered check fraud—a federal crime in the United States.
In contrast to U.S. banking norms, paper checks are nearly obsolete in much of Europe. Countries such as Denmark and the Netherlands have phased them out entirely.
Despite growing adoption of digital payment methods like ApplePay, checks are still widely used in America as a preferred form of payment.
{Matzav.com}