JPMorgan Chase has initiated legal action against several customers accused of exploiting a recent ATM glitch to commit check fraud. The glitch, which briefly circulated on TikTok, allowed customers to deposit large checks and withdraw money immediately, often before the bank identified the checks as counterfeit.
The lawsuits were filed on Monday in federal courts in Los Angeles, Houston, and Miami. JPMorgan claims two individuals and two businesses collectively withdrew more than $661,000 through fraudulent means. In one case, a Houston resident allegedly owes over $290,000 after a $335,000 check was deposited in his account by a masked individual on August 29. The check bounced on September 4, but the funds had already been withdrawn.
JPMorgan asserts that each defendant violated their deposit agreements by retaining funds they weren’t entitled to. The bank is now seeking the return of these funds along with additional costs. JPMorgan spokesperson Drew Pusateri highlighted the severity of the issue, noting, “Fraud is a crime that impacts everyone and undermines trust in the banking system.”
The bank has been working closely with law enforcement, as check fraud remains a federal offense. JPMorgan previously reported investigating thousands of check fraud cases after the glitch was identified, underscoring its commitment to restoring order and trust in its processes.
Banks like Chase typically allow customers limited access to deposited funds while checks are verified, a system that was exploited in this instance. These lawsuits represent JPMorgan’s stance on ensuring accountability and discouraging further exploitation of banking systems.
