#JPMorgan #InfiniteMoneyGlitch #FinancialFraud
JPMorgan Chase Takes Legal Action Against Customers Exploiting 'Infinite Money Glitch'
In a significant move to address a recent wave of fraud, JPMorgan Chase has begun suing customers who allegedly exploited a technical glitch to withdraw thousands of dollars from ATMs. This glitch, dubbed the "infinite money glitch," allowed individuals to access funds before checks cleared, a process that typically takes several days.
On Monday, JPMorgan filed lawsuits in at least three federal courts, targeting individuals who withdrew substantial sums of money. One notable case in Houston involves a man who owes JPMorgan $290,939.47 after an accomplice deposited a fraudulent $335,000 check at an ATM. According to the bank's filing, the defendant began withdrawing the majority of these ill-gotten funds immediately after the check was deposited.
This issue came to light in late August when videos started circulating on social media platforms like TikTok, showing people celebrating as they withdrew large amounts of cash from Chase ATMs shortly after depositing bad checks. The glitch highlighted the risks associated with social media amplifying vulnerabilities within financial institutions.
JPMorgan has closed the loophole that allowed this fraud, but the bank is now investigating thousands of potential instances related to this glitch. While the full extent of the losses is not yet disclosed, it is part of a broader issue where paper checks remain a significant avenue for fraud, resulting in global losses estimated at $26.6 billion last year.
In each case, JPMorgan's security team has contacted the alleged offenders, but repayment for the fraudulent checks has not been received, violating the deposit agreement customers sign when opening an account. The bank is seeking the return of the stolen funds, along with interest, overdraft fees, legal costs, and in some cases, punitive damages.
These civil lawsuits are separate from potential criminal investigations, and JPMorgan has referred cases to law enforcement officials across the country. The bank is prioritizing cases involving larger sums and possible links to organized crime. "Fraud impacts everyone and undermines trust in the banking system," said Drew Pusateri, a spokesperson for JPMorgan. "We're pursuing these cases and actively cooperating with law enforcement to ensure individuals committing fraud against Chase and its customers are held accountable".
This legal action marks the beginning of a broader effort to recover debts and send a clear message that fraud will not be tolerated by JPMorgan.
Original Article: https://www.cnbc.com/2024/10/28/jpmorgan-suing-customers-over-infinite-money-glitch.html
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