JPMorgan sues customers for check fraud after exploiting viral ATM glitch

JPMorgan Chase launched a drawstring of lawsuits connected Monday against customers nan institution accused of exploiting a method glitch that went viral connected TikTok to yank retired thousands of dollars.

The glitch successful precocious August fto customers deposit large checks successful ATMs and retreat costs instantly earlier nan checks could clear, moreover if nan checks later bounced.

The nation’s largest lender revenge complaints successful Houston, Miami and 2 successful Los Angeles accusing 2 individuals and 2 businesses of illegally hanging connected to much than $661,000.

The glitch successful precocious August fto customers deposit large checks successful ATMs and retreat costs instantly earlier nan checks could clear, moreover if nan checks later bounced. X

In nan largest case, JPMorgan said a Houston man still owes $290,939.47 aft withdrawing complete 2 days astir of a $335,000 cheque that a masked man deposited successful his relationship connected Aug. 29. The slope said nan cheque was rejected connected Sept. 4.

The defendants did not answer, did not accept, aliases could not instantly beryllium reached pinch messages seeking remark connected Monday.

The civilian lawsuits do not exclude aliases extremity nan anticipation of immoderate criminal charges.

All 4 lawsuits impeach nan defendants of violating their deposit agreements, and activity nan return of improperly withdrawn costs positive different costs.

JPMorgan, based successful New York, said it is pursuing nan cases and cooperating pinch rule enforcement to guarantee that group are held accountable.

“Fraud is simply a crime that impacts everyone and undermines spot successful nan banking system,” JPMorgan spokesperson Drew Pusateri said successful a statement.

Check fraud is simply a national crime. Many banks including JPMorgan fto customers entree immoderate of nan worth of their checks until nan checks clear.

Last month, nan Wall Street Journal reported that nan slope was investigating thousands of imaginable cheque fraud incidents.

Chase revenge 4 lawsuits connected Monday successful national courts successful Los Angeles, Houston and Miami. Getty Images

Paper checks are nary longer accepted successful astir European countries. For example, nan UK and nan Netherlands scrapped them 2 decades ago.

Yet they stay a celebrated shape of costs successful nan United States, contempt nan accrued usage of integer exertion specified arsenic ApplePay.

Checks resulted successful $26.6 cardinal successful losses globally past year, according to Nasdaq’s Global Financial Crime Report.