JPMorgan has begun legal proceedings against customers who allegedly stole hundreds of thousands of dollars during a technical malfunction in the bank’s ATM systems.
The so-called “infinite money glitch” allowed customers to deposit counterfeit checks and then withdraw the cash before the check bounced.
On Monday, the bank filed at least four separate federal lawsuits, including one case where a sum of more than $290,000 was allegedly withdrawn by a Chase customer.
Customers became aware of the apparent “free money” hack over the summer after it trended on social media apps like TikTok. However, those who tried to cash in on the hiccup were warned at the time that they were attempting to commit run-of-the-mill fraud.
While social media users celebrated their apparent manipulation of the system, Chase Bank told Coins2Day in September: “We are aware of this incident, and it has been addressed. Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple.”
Chase isn’t the only bank to deal with such issues. In August 2023, Bank of Ireland customers found themselves able to pull out large sums from ATMs, with many mistakenly believing they were getting free money.
Some were able to withdraw more money than usual, while others could transfer up to €1,000 ($1,090) to other accounts—even if it was more than they had available—and then withdraw the funds in cash.
In Chase’s case, the four lawsuits were submitted in Los Angeles, Houston, and Miami, Reuters reports—two relating to individual accounts and two relating to business accounts.
While the total across the four cases—all withdrawn after a deposit of forged or counterfeit checks—came to more than $661,000, a significant portion of that comes from just one case.
Per filings seen by CNBC, one customer allegedly withdrew $290,939.47 in Houston after an unidentified accomplice deposited a counterfeit check for $335,000.
The accomplice in the case was wearing a mask when the check was deposited.
According to the complaints seen by CNBC, in every case America’s largest bank has reached out to the defendants to request the fraudulently acquired cash be returned.
The handful of reported cases thus far relate to the individuals who have yet to return the funds.
The bank, CNBC reports, is seeking to recoup the stolen money as well as interest and overdraft fees on the accounts. In addition, legal fees—and in some cases punitive damages—are also being sought.
JPMorgan Chase did not immediately respond to Coins2Day‘s request for comment.
However, in a statement to CNBC, a spokesman for the institution said: “Fraud is a crime that impacts everyone and undermines trust in the banking system.
“We’re pursuing these cases and actively cooperating with law enforcement to make sure if someone is committing fraud against Chase and its customers, they’re held accountable.”