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JPMorgan Chase & Co. (JPM +1.11%) has begun filing lawsuits against people who withdrew hundreds of thousands of dollars using a so-called “infinite money glitch” that went viral on social media last summer.
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In August, posts began circulating that told users how to exploit the “glitch,” essentially committing check fraud. This involved depositing large amounts of fake checks and withdrawing some of the available funds before the bank could clear the checks.
JPMorgan has filed several lawsuits, including one in the U.S. District Court for the Southern District of Texas. In this case, a Houston man deposited a $335,000 check on Aug. 29 and immediately began withdrawing funds. The check was rejected as a forgery, and the bank discovered that the man owed Chase $290,939.47.
“Chase takes its responsibility to combat fraud seriously and prioritizes protecting the company and its customers to make the banking system more secure,” the bank said in a filing Monday. “Part of that responsibility is to hold Chase and its customers accountable when they commit fraud. Simply put, engaging in bank fraud is a crime.”
Other lawsuits have been filed in federal courts in Florida and California on similar charges.
The bank, the nation’s largest by assets, is asking the perpetrators of the fraud to immediately return the funds and pay related overdraft fees and legal fees.
“Fraud is a crime that affects everyone and undermines trust in the banking system,” a Chase spokesperson said. “We are pursuing these cases and actively working with law enforcement to ensure that anyone who defrauds Chase and our customers is held accountable.”
JPMorgan said it addressed the issue days after it was shared in a viral video on TikTok and other social media sites.
