Home Finance JPMorgan begins suing customers over ‘infinite money error’

JPMorgan begins suing customers over ‘infinite money error’

by Eclipsnews
0 comment

JPMorgan sues customers over money glitch viral scam

JPMorgan Chase has begun charging customers who allegedly stole thousands of dollars from ATMs by abusing a technical fault allowing them to withdraw money before a check bounced.

The bank filed lawsuits in at least three federal courts on Monday, targeting some of the people who withdrew the highest amounts in the so-called infinite money glitch that took place. viral on TikTok and other social media platforms end of August.

A Houston case involves a man who owes JPMorgan $290,939.47 after an unknown accomplice deposited a counterfeit check for $335,000 at an ATM, the bank said.

“On August 29, 2024, a masked man deposited a check in the amount of $335,000 into Defendant’s Chase bank account,” the bank said in the Texas filing. “After the check was deposited, defendant began withdrawing the vast majority of the ill-gotten funds.”

JPMorgan, the largest U.S. bank by assets, is investigating thousands of possible cases related to the “infinite money glitch,” although it has not disclosed the extent of associated losses. Despite the declining use of paper checks as digital forms of payment become more popular, they are still a significant source of fraud, resulting in $26.6 billion suffered global losses last year, according to Nasdaq’s Global Financial Crime Report.

The never-ending money glitch episode highlights the risk that social media can amplify vulnerabilities discovered at a financial institution. Videos started circulating and showing people in late August celebrate withdrawing wads of cash from Chase ATMs shortly after bad checks were deposited.

Normally, banks only make available a fraction of a check’s value until it clears, which takes several days. JPMorgan says it closed the loophole a few days after it was discovered.

Miami and California

The other lawsuits filed Monday are in courts including Miami and the Central District of California, and involve cases in which JPMorgan says customers are owed bank amounts ranging from about $80,000 to $141,000.

Most of the cases the bank is investigating involve much smaller amounts, according to people with knowledge of the situation who declined to be identified speaking about the internal investigation.

In both cases, JPMorgan says its security team contacted the alleged fraudster, but the counterfeit checks were not returned, in violation of the deposit agreement customers sign when creating an account with the bank.

According to the complaints, JPMorgan is seeking the return of the stolen funds, along with interest and overdraft fees, as well as attorneys’ fees and, in some cases, damages.

Criminal cases?

The lawsuits are likely just the start of a wave of lawsuits aimed at forcing customers to repay their debts and broadly signaling that the bank will not tolerate fraud, people familiar said. JPMorgan prioritized cases with large dollar amounts and indications of possible ties to criminal groups, they said.

The civil cases are separate from any criminal investigations; JPMorgan says it has also referred cases to law enforcement officials across the country.

“Fraud is a crime that affects everyone and undermines confidence in the banking system,” JPMorgan spokesperson Drew Pusateri said in a statement to CNBC. “We are prosecuting these cases and actively working with law enforcement to ensure that if anyone commits fraud against Chase and its customers, he or she is held accountable.”

Don’t miss these insights from CNBC PRO

You may also like

Leave a Comment

Experience a world of information in one place! Our site covers breaking news, beauty, lifestyle, entertainment, tech, and travel – your gateway to a diverse and enriching news landscape.

Subscribe our newsletter for latest lifestyle, tech update. Let's stay updated!

 
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00

Adblock Detected

Please support us by disabling your AdBlocker extension from your browsers for our website.