JPMorgan Files Lawsuits Against Customers Who Took Advantage of “Infinite Money Glitch”

JPMorgan Chase recently started cracking down on all customers who took advantage of the so-called ‘infinite money glitch’ — a glitch in the bank’s cheque deposit service that allowed them to withdraw thousands of dollars from ATMs.

JPMorgan Is Filing Lawsuits Against Its Own Customers

The glitch quickly went viral on the internet when JPMorgan users realized that they could write large cheques to themselves and then withdraw all of the deposited cash before the cheque bounced.

What many did not realize was that performing such activities is essentially financial fraud and a federal offense. Typically, banks in the US allow users to only withdraw a fraction of the value of the cheque on the spot, while the full amount only becomes available after the cheque is cleared.

What they saw as a cash withdrawal loophole went viral on TikTok, and before long, countless users started performing it, recording themselves as they committed the crime. Some even recorded themselves throwing money around on the street as part of their act.

However, Chase quickly became aware of the situation and is now pursuing thousands of its users who took advantage of the loophole. So far, the bank has already commenced criminal proceedings against two individuals and two businesses.

Among its demands is that the individuals who participated in the exploitation of the glitch return the money, and pay interest on it. They must also pay related overdraft fees, and cover legal expenses, in addition to all other costs that the bank may have suffered as part of the situation.

Paper Cheques Still Represent A Major Fraud Risk

The situation started getting even more unusual when in one of the cases, a masked individual deposited a cheque in the defendant’s Chase bank account for $335,000. Soon enough, the cheque turned out to be a counterfeit, but before it bounced, the customer already withdrew $290,000.

Commenting on the situation in one of its court filings, the bank wrote that Chase takes its responsibility to combat fraud very seriously. “Part of that responsibility is to hold people accountable when they commit fraud against Chase and its customers. Simply put, engaging in bank fraud is a crime,” the bank said.

While Chase has already filed lawsuits in at least three courts, it said that it is also investigating thousands of possible cases, although it did not disclose the scope of associated losses. The situation also highlighted the paper cheques’ potential for fraud during the times when digital forms of payment are gaining popularity.