US banking giant JP Morgan Chase is suing several customers accused of exploiting a glitch in its ATM system to illegally withdraw large sums of money.
Dubbed the “infinite money glitch” on TikTok, the flaw allowed users to deposit large checks to themselves, withdraw funds immediately, and collect the cash before the checks were rejected.
The lawsuits target two individuals and two businesses in Houston, Miami, and Los Angeles, demanding repayment with interest, coverage of overdraft fees, and legal expenses.
In a statement included in court filings, JP Morgan emphasized its commitment to combatting fraud and holding those responsible accountable, saying, “Engaging in bank fraud is a crime.”
In one case, court documents allege that on August 29, a man deposited a $335,000 check into his account and immediately began withdrawing the funds. When the check was identified as counterfeit, the bank said he still owed over $290,000.
Altogether, JP Morgan claims that more than $660,000 was improperly withdrawn in the four cases. US banks typically allow customers to withdraw only a small portion of a check’s value before it clears, but this glitch bypassed those security measures.
According to a report by the Wall Street Journal, the bank quickly closed the loophole after videos discussing it gained traction on social media last month. Chase is now investigating other potential instances of check fraud.
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