JP Morgan Sues Some Customers. The bank began suing clients who allegedly stole thousands of dollars in 'infinite money glitch'.
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| JP Morgan Sues Some Customers |
JPMorgan Infinite Money Glitch Issue
JPMorgan Chase has begun suing customers who allegedly stole thousands of dollars from ATMs by taking advantage of a technical glitch that allowed them to withdraw funds before a check bounced.
The bank on Monday filed lawsuits in at least three federal courts, taking aim at some of the people who drew down the highest amounts in the so-called infinite money glitch that went viral on social media.
A Houston case involves a man who owes JPMorgan $290,939.47 after an unidentified accomplice deposited a counterfeit $335,000 check at an ATM, according to the bank.
JPMorgan Sues Customers Who Allegedly Stole Thousands of Dollars in 'infinite money glitch'.
Customers who allegedly stole thousands of dollars from ATMs by exploiting a technical issue that allowed them to withdraw money before a check bounced are being sued by JPMorgan Chase.
Targeting some of the individuals who took out the largest sums in the infamous "infinite money glitch," which went viral on TikTok and other social media sites in late August, the bank filed lawsuits in at least three federal courts on Monday.
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According to JPMorgan, a guy in a Houston case owes the bank $290,939.47 after an unnamed accomplice submitted a fake $335,000 check at an ATM.
"On August 29, 2024, a masked man deposited a check in Defendant's Chase bank account in the amount of $335,000," the bank stated in the Texas lawsuit. "After the check was deposited, Defendant began withdrawing the vast majority of the ill-gotten funds."
JPMorgan, the largest bank in the United States by assets, is looking into thousands of potential cases relating to the "infinite money glitch," but has not disclosed the extent of the associated losses.
Despite the decline in use of paper checks as digital forms of payment become more widespread, they remain a key source of fraud, accounting for $26.6 billion in global losses last year, according to Nasdaq's Global Financial Crime Report.
The infinite money glitch episode demonstrates how social media can spread vulnerabilities uncovered in a financial organization. In late August, videos emerged showing people celebrating the withdrawal of wads of cash from Chase ATMs immediately after bogus checks were placed.
Banks often make only a fraction of a check's value available until it clears, which can take several days. JPMorgan said it addressed the issue shortly after it was found.
JP Morgan's Money Theft Cases in Miami and California
The other complaints, which were filed Monday, are in the Central District of California and Miami courts. According to JPMorgan, the clients owe the bank amounts that range from roughly $80,000 to $141,000.
Speaking on the internal inquiry, people with knowledge of the matter who wished to remain anonymous said that the majority of cases the bank is looking into are for far lesser sums.
In each instance, JPMorgan claims that despite reaching out to the suspected fraudster, its security team has not received payment for the fraudulent checks, which is against the deposit agreement that clients sign when opening an account with the bank.
According to the charges, JPMorgan is demanding the recovery of the stolen monies, along with interest and overdraft fees, lawyers' expenses, and, in some cases, punitive damages.
According to those aware, the actions are expected to be the beginning of a wave of litigation aimed at forcing clients to return their debts and signaling to the public that the bank would not tolerate fraudulent behavior. JPMorgan prioritized cases with huge sums of money and ties to criminal organizations, they said.
The civil actions are separate from any potential criminal investigations; JPMorgan says it has also referred cases to law enforcement officers around the country.
"Fraud is a crime that impacts everyone and undermines trust in the banking system," JPMorgan spokesperson Drew Pusateri told CNBC. "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."