JPMorgan Chase has begun legal action against customers who stole hundreds of thousands of dollars by exploiting a technical flaw that allowed them to deposit fraudulent checks and quickly withdraw large sums of cash from ATMs.
The “infinite money” glitch went viral on TikTok and other social media platforms in late August, allowing people to deposit a check and then immediately withdraw their “free” money before the check cleared. I could see what was going on.
The bank filed suit Monday in three federal courts against two people and two companies who withdrew a combined total of about $662,000.
“Fraud is a crime that affects everyone and undermines trust in the banking system,” Chase spokesman Drew Pusateri said in a statement. “We are pursuing these cases and actively working with law enforcement to ensure that anyone who defrauds Chase and our customers is held accountable.”
Litigation in California, Florida, and Texas
One lawsuit filed in Houston alleges that a “masked man” deposited a $335,000 check into a defendant’s bank account at an ATM. The man then immediately began withdrawing money totaling $290,947.39 before the checks were returned as counterfeit.
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In a lawsuit filed in the Central District of California, JPMorgan Chase alleges that “on August 27 and August 28, 2024, an individual deposited fraudulent checks totaling over $116,063.55 into Defendants’ bank accounts. He then immediately transferred more than $90,000.” of your account.
Two separate lawsuits were filed in Miami against companies named In and Out Appliances and Riskboss Musiq. The companies are said to be owed $138,680.91 and $141,295.84, respectively.
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JPMorgan Chase said in each lawsuit that it contacted the defendants and asked them to “pay the overdraft amount and any applicable fees,” but the defendants did not respond.
“While fraud techniques have evolved over time, the core intent to exploit and deceive remains the same,” the bank said in all four lawsuits.
Max Hauptman is a trends reporter for USA TODAY. He can be reached at MHauptman@gannett.com.
