JPMorgan sues clients over ‘endless free money glitch’

Key Findings

JPMorgan Chase on Monday reportedly filed lawsuits against customers who allegedly took advantage of a “endless free money glitch” advertised on social media and stole thousands of dollars from its ATMs.
Viral videos described a “loophole” that involved depositing large-dollar bad checks and making withdrawals before the checks bounced.
A few days after the videos were published, JPMorgan Chase clarified that it was check fraud.
The bank has reportedly filed lawsuits in at least three federal courts against those who withdrew the largest sums, seeking the return of the stolen funds, as well as other interest and fees.

JPMorgan ChaseDPM) has reportedly begun suing customers who allegedly took advantage of the “endless free money glitch” spotted on social media and stole thousands of dollars from the bank’s ATMs.

The glitch went viral Tik Tok and other social networks at the end of August. He encouraged the posting of large fraudulent checks and the withdrawal of funds before the due date. checks bounced. Although it was called a “loophole” on social networks, JP Morgan Chase A few days after the video was posted, it was revealed that the action was a form of check fraud.

On Monday, the bank filed four lawsuits in federal courts against two individuals and two businesses that illegally siphoned off the largest sums, according to Reuters.

Lawsuits against customers seek to recover fraudulent withdrawals

One lawsuit was filed in the U.S. District Court for the Southern District of Texas. The case involves a man from Houston who withdrew funds after depositing check for $335,000. The man owes the bank $290,939.47, CNBC and Reuters reported.

The remaining lawsuits are in federal courts in Miami and Los Angeles, where JPMorgan said clients owe between $80,000 and $141,000. The bank seeks the return of the stolen funds along with interest and overdraft feeattorneys’ fees and, in some cases, punitive damages, CNBC reported.