US banking giant JP Morgan Chase has filed lawsuits against two individuals and two businesses, alleging they exploited a technical glitch to illegally withdraw thousands of dollars from its ATMs.
The glitch, dubbed the “infinite money glitch” on TikTok, allowed customers to deposit large cheques, withdraw funds before they bounced, and keep the money. The bank seeks return of the funds with interest, overdraft fees, legal expenses, and other costs.
“Chase takes its responsibility to combat fraud seriously and prioritises protecting the firm and its customers to make the banking system safer,” the bank stated in court filings. “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.”
One lawsuit details a transaction where a masked individual deposited a $335,000 cheque into a defendant’s Chase account on August 29. The defendant then withdrew the funds, but the cheque was later returned as counterfeit, leaving the defendant owing the bank over $290,000.
According to JP Morgan Chase’s lawyers, the total amount kept by the defendants in the four lawsuits exceeds $660,000.
Typically, US banks allow customers to withdraw only a small fraction of a cheque’s value before clearance. Last month, The Wall Street Journal reported that JP Morgan Chase closed the loophole after social media videos highlighting the glitch went viral. The bank is investigating thousands of potential cheque fraud incidents.
