The largest US bank is suing customers over the viral TikTok check scam

Latest update:29 Oct 2024, 12:33 IST

The Wall Street Journal reported last month that the bank was investigating thousands of possible cases of check fraud

A person walks into the headquarters of JPMorgan Chase & Co. in New York in Manhattan, New York, USA on June 30, 2022. (Reuters/File Photo)

JPMorgan Chase, the largest U.S. bank, has begun suing customers for check fraud, saying they improperly withdrew funds by illegally taking advantage of a temporary technical glitch that went viral on TikTok.

The glitch in late August allowed customers to deposit large checks at ATMs and withdraw funds immediately before the checks could be cashed, even if the checks later bounced.

Chase filed four lawsuits Monday in federal courts in Los Angeles, Houston and Miami, accusing two people and two businesses of wrongfully withholding more than $661,000 after checks they deposited were found to be forged or forged.

In the biggest case, Chase said a Houston man still owes $290,939.47 after cashing most of a $335,000 check a masked man deposited into his account on Aug. 29 within two days. Chase said the check bounced on Sept. 4.

The defendants did not return, accept or could not immediately be reached for messages seeking comment on Monday. All four lawsuits accuse the defendants of breaching their deposit agreements and seek the return of wrongfully withdrawn funds and other expenses.

JPMorgan, based in New York, said it was investigating the cases and working with law enforcement to ensure the people are brought to justice. The Wall Street Journal reported last month that the bank was investigating thousands of possible cases of check fraud.

“Fraud is a crime that affects everyone and undermines trust in the banking system,” said JPMorgan spokesman Drew Pusateri. Check fraud is a federal crime. Many banks, including Chase, allow customers to access a portion of the value of their checks until the checks are cleared.

(This story was not edited by News18 staff and was published from the syndicated news agency channel – Reuters)

Arrangement:

Washington, DC, United States of America (USA)