JPMorgan is taking legal action against customers who exploited a glitch in the bank’s cheque deposit service, allowing them to withdraw significant amounts of cash from ATMs.
The issue arose when customers were able to write substantial cheques to themselves, withdrawing all the cash before the cheques bounced. Typically, U.S. banks permit only a small portion of a cheque’s value to be withdrawn prior to its clearance.
This loophole gained popularity on TikTok under the label of the “infinite money glitch.” In response, Chase is now pursuing legal action against thousands of customers who capitalized on the error, including commencing criminal proceedings against two individuals and two businesses.
Those targeted are being asked to return the funds with interest, as well as to pay overdraft fees and other legal costs incurred by the bank. In one notable incident, a masked individual deposited a counterfeit cheque for $335,000 into a Chase account, leading to the withdrawal of $290,000 before the cheque was identified as fraudulent.
Chase has stated in court filings, “Chase takes its responsibility to combat fraud seriously. Part of that responsibility is to hold people accountable when they commit fraud against Chase and its customers. Simply put, engaging in bank fraud is a crime.”