JPMorgan's infinite money glitch: Customers withdrew funds before check clearance
What's the story
JPMorgan Chase, the largest bank in the US, has filed a lawsuit against a number of customers for check fraud.
The bank claims that these people took advantage of a temporary technical glitch that was widely reported on TikTok as "infinite money glitch."
The system error, which appeared in late August, enabled customers to deposit large checks at ATMs and withdraw funds immediately before the checks were cleared.
Legal action
4 lawsuits in response to withdrawals
Separately, JPMorgan has filed four lawsuits in federal courts in Los Angeles, Houston, and Miami.
The bank accuses two individuals and two businesses of illegally keeping over $661,000 after their deposited checks were flagged as counterfeit or forged.
In the most high-profile case, a Houston man is said to owe $290,939.47 after withdrawing most of a $335,000 check that was later rejected.
The check was deposited on August 29 and it was rejected on September 4.
Recovery efforts
Bank seeks return of funds and other costs
The lawsuits filed by JPMorgan allege that the defendants violated their deposit agreements. The bank is seeking the return of improperly withdrawn funds as well as additional costs.
JPMorgan has said that it is committed to pursuing these cases and is working with law enforcement to hold people accountable for their actions.
Ongoing investigation
JPMorgan investigates thousands of potential check fraud cases
Last month, The Wall Street Journal reported that JPMorgan was investigating thousands of potential check fraud incidents.
"Fraud is a crime that impacts everyone and undermines trust in the banking system," said Drew Pusateri, a spokesperson for JPMorgan.
The bank's actions underscore its commitment to maintaining integrity within the banking system, and holding those accountable who exploit technical glitches for personal gain.