Chase Starts Suing People Over ‘Infinite Money Glitch’
Back in August, a few videos went viral on X and Tik Tok with instructions on how to get free money from Chase and other banks. These videos were showing people celebrating the withdrawal of massive amounts of cash from Chase ATMs shortly after bad checks were deposited.
The viral videos described a “loophole” that included depositing fake checks for large amounts. Then they would withdraw funds before the checks cleared and bounced. Most banks will make a portion of deposited checks available right away. Chase was apparently a bit too generous here, but Fidelity and some other banks were also affected.
Days after the videos went viral, JPMorgan Chase clarified that this was check fraud. Now the bank has begun suing customers who allegedly stole thousands of dollars from ATMs by taking advantage of the technical glitch.
Today JPMorgan Chase filed lawsuits in at least three federal courts, taking aim at some of the people who withdrew the highest amounts.
One of those cases involves a man in Houston, Timipah Ikemi, who owes Chase $290,939.47 after an unidentified accomplice deposited a counterfeit $335,000 check at an ATM. The other lawsuits filed Monday are in courts including Miami and the Central District of California, and involve cases where JPMorgan says customers owe the bank sums ranging from about $80,000 to $141,000.
Chase says its security team reached out to alleged fraudsters, but it hasn’t been repaid for the phony checks. The bank says that this is a violation of the deposit agreement that customers sign when creating an account with the bank. Chase is seeking the return of the stolen funds with interest and overdraft fees, as well as lawyers’ fees and, in some cases, punitive damages, according to CNBC.
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