JPMorgan Chase is suing customers in the US it accuses of stealing thousands of dollars from ATMs by exploiting a technical glitch that went viral on TikTok this summer.
The US bank has filed lawsuits in at least three federal courts against people who withdrew funds before a cheque bounced, in the so-called “infinite money glitch”.
The company filed at least four complaints on Monday, which allege that bank users deposited tens or hundreds of thousands of dollars in fake cheques into their Chase accounts and withdrew large sums before the cheques bounced. The lawsuits filed in Los Angeles, Houston, and Miami federal courts say those customers together owe the bank about $660,000 (£509,000).
The bank had warned customers that taking advantage of the fault with the system to extract cash was “fraud, plain and simple”. Banks usually allow customers to withdraw only a small fraction of the value of a cheque until it clears, which takes several days. JPMorgan said on 2 September that it had fixed the problem, but only after a number of customers had taken advantage of it.
The lawsuits do not mention the TikTok ATM glitch trend, but the withdrawals named in the lawsuits used the method widely publicised on the social media platform in late August. Viral clips told users to write large cheques to themselves and and then withdraw all or part of the sums from ATMs.
In one case in Houston, a masked man deposited a counterfeit $335,000 cheque at an ATM. According to the Texas court filing, the defendant began withdrawing most of the money and now owes JPMorgan $290,939.47.
The lawsuits said this practice amounts to bank fraud, and customers must return the funds and associated fees immediately, alongside attorneys’ fees and other relief.
The bank said: “Fraud is a crime that impacts everyone and undermines trust in the banking system. Chase takes its responsibility to combat fraud seriously and prioritises protecting the firm and its customers to make the banking system safer.”
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One video posted on social media showed alleged participants shouting with joy and throwing cash in the air. Other videos, however, showed alleged participants then later upset after seeing huge negative balances on their bank accounts once the bad cheques had bounced, yet their withdrawals of cash were still accounted for.
Source: theguardian.com
