JPMorgan Chase has initiated legal proceedings against several customers who are accused of unlawfully withdrawing funds during a recent technical malfunction in the bank’s ATM systems.
This incident, referred to as the “infinite money glitch,” enabled individuals to deposit counterfeit checks and withdraw cash before the checks bounced.
On Monday, JPMorgan filed at least four federal lawsuits in various locations, including Houston, Miami, and Los Angeles. One notable case involves a customer who allegedly withdrew over $290,000 following the deposit of a counterfeit check for $335,000 by an accomplice who was wearing a mask at the time.
The glitch gained notoriety over the summer, particularly on social media platforms like TikTok, where users shared videos detailing how to exploit the system. Despite the viral trend, the bank issued warnings that such actions constituted fraud. In a statement to Fortune, a Chase spokesperson emphasized that depositing a fraudulent check and withdrawing the funds is a clear violation of the law.
In total, the four lawsuits collectively seek the return of more than $661,000, with the largest claim stemming from the Houston case. JPMorgan is requesting not only the return of the improperly withdrawn funds but also interest, overdraft fees, and potential punitive damages.
In August, a similar situation occurred at Bank of Ireland, where customers mistakenly believed they could withdraw large sums from ATMs without repercussions. This incident highlights a broader issue facing banks as they navigate the challenges posed by check fraud and technological vulnerabilities.
JPMorgan’s spokesperson, Drew Pusateri, reiterated the bank’s commitment to addressing fraud.
“Fraud is a crime that impacts everyone and undermines trust in the banking system,” Pusateri stated.
The bank is cooperating with law enforcement to ensure that individuals engaged in fraudulent activities are held accountable.
While the current lawsuits focus on civil claims, there remains the potential for criminal charges against the defendants. This situation serves as a reminder of the risks associated with exploiting banking systems, particularly in an era where digital transactions are increasingly common, yet traditional checks continue to play a significant role in the financial landscape.
Fortune, FOX Business, and New York Post contributed to this report.
