JPMorgan Chase is suing customers over viral ATM fraud

JPMorgan Chase has begun suing customers who stole hundreds of thousands of dollars by exploiting a technical glitch that allowed them to deposit fake checks and then quickly withdraw large amounts of cash from ATMs.

“Infinite Money” glitch in late August went viral on TikTok and other social media platforms, showing people depositing checks and then immediately withdrawing the “free” money before the check cleared.

On Monday, the bank filed lawsuits in three federal courts against two individuals and two companies that collectively withdrew nearly $662,000.

“Fraud is a crime that affects everyone and undermines trust in the banking system,” Chase spokesman Drew Pusateri said in a statement. “We are investigating these cases and actively working with law enforcement to make sure that if anyone commits fraud against Chase and its customers, they are held accountable.”

Lawsuits in California, Florida, Texas

One case, filed in Houston, alleges that a “masked man” deposited a $335,000 check into the defendant’s bank account at an ATM. The man then immediately began withdrawing money – a total of $290,947.39 – before the check was returned as a fake.

In the suit, filed in the Central District of California, JPMorgan Chase alleges that “on August 27 and August 28, 2024, an individual deposited two fraudulent checks into the defendant’s bank account” totaling more than $116,063.55, who then promptly transferred more than $90,000 US dollars. account.

Two separate cases were filed in Miami against companies called In and Out Appliances and Riskboss Musiq. Those businesses are said to be owed $138,680.91 and $141,295.84 respectively.

In each of the lawsuits, JPMorgan Chase says it contacted the defendants to “pay the amount of any overdraft, together with any applicable fees,” but the defendants failed to do so.

“While fraud techniques have evolved over time, the basic intent to exploit and deceive remains the same,” the bank said in all four lawsuits.

Max Hauptmann is a popular reporter for USA TODAY. He can be reached at [email protected]