JPMorgan Chase has started legal action against customers who exploited a technical flaw to withdraw large amounts of cash after depositing fraudulent checks. This “infinite money” glitch gained popularity on TikTok and other social media in late August, with users showing how they could deposit checks and quickly take out money before the checks cleared.
On Monday, the bank initiated lawsuits in three federal courts against two individuals and two businesses that together withdrew nearly $662,000. Chase spokesperson Drew Pusateri stated, “Fraud is a crime that impacts everyone and undermines trust in the banking system. We’re pursuing these cases and working closely with law enforcement to ensure that anyone committing fraud against Chase and its customers is held accountable.”
Lawsuits filed in California, Florida, and Texas
In one lawsuit filed in Houston, it is claimed that a “masked man” deposited a counterfeit check for $335,000 into a defendant’s bank account using an ATM. Shortly after the deposit, he began withdrawing funds, totaling $290,947.39, before the check was identified as fraudulent.
In a lawsuit filed in the Central District of California, JPMorgan Chase claims that “on August 27 and August 28, 2024, an individual deposited two fake checks” totaling over $116,063.55 into the defendant’s bank account, and then quickly transferred more than $90,000 out of that account.
Additionally, two separate cases have been filed in Miami against businesses called In and Out Appliances and Riskboss Musiq, which are alleged to owe $138,680.91 and $141,295.84, respectively.
In each of the lawsuits, JPMorgan Chase states that it has reached out to the defendants, asking them to “repay any overdraft along with applicable fees,” but the defendants have not complied.
The bank noted in all four lawsuits, “While fraud methods have evolved over time, the fundamental intention to exploit and deceive remains the same.”
