JPMorgan Chase Sues Customers Over ‘Infinite Money Glitch’ ATM Scam

JPMorgan Chase, the largest financial institution in the United States, is taking legal action against customers accused of exploiting a technical glitch in its ATMs. The glitch allowed users to withdraw significant sums of money using fake checks. The incident went viral over the summer and spread rapidly across social media platforms, with TikTok users showcasing methods for depositing bogus checks and walking away with thousands in cash.

The bank has initiated four lawsuits to date—two against individuals and two targeting businesses—in major cities, including Los Angeles, Houston, and Miami. Chase spokesperson Drew Pusateri emphasized the impact of such fraudulent activities on the broader banking system. “Fraud is a crime that affects everyone and erodes trust in financial institutions,” Pusateri stated. “We’re committed to pursuing these cases and are working closely with law enforcement to hold those accountable who defraud Chase and its customers.”

In the most significant case filed so far, JPMorgan detailed an incident in Texas where a “masked man” allegedly deposited a counterfeit $335,000 check into a defendant’s account at an ATM, later withdrawing nearly all of it before the bank detected the fraud. Chase claims it is owed a total of $290,939.47 from this transaction.

JPMorgan’s legal filings highlighted its commitment to combating fraud, especially amid rising bank and wire scams. “While the tactics have changed, the core intent to deceive remains constant,” the bank’s statement read. Chase underscores its dedication to safeguarding customers from increasingly sophisticated fraud schemes

By Ben Carson,
Senior Business Reporter, The Midtown Times

November 01, 2024, 2:54 PM – Midtown Times