JPMorgan Chase has filed lawsuits against several customers accused of exploiting a technical glitch to carry out check fraud. The glitch, which gained viral attention on TikTok, allowed customers to deposit checks in ATMs and immediately withdraw funds without waiting for the bank to verify the check’s authenticity.
On Monday, JPMorgan filed lawsuits in Los Angeles, Houston, and Miami, naming two individuals and two businesses as defendants. Together, they are accused of withdrawing over $661,000 by abusing the glitch. In one notable case, a Houston man allegedly withdrew most of a $335,000 check deposited by a masked individual on August 29. When the check was found to be counterfeit, JPMorgan suffered significant financial loss.
The bank seeks repayment of these funds, claiming that the defendants breached their deposit agreements by retaining the money. A JPMorgan representative, Drew Pusateri, emphasized the impact of fraud on the banking system, stating, “Fraud is a crime that impacts everyone and undermines trust in the banking system.”
JPMorgan has been collaborating with law enforcement since September when it began investigating numerous check fraud cases linked to the glitch. Banks typically permit partial access to check deposits before verification, a policy JPMorgan says was exploited by fraudsters during this technical failure.
These lawsuits underscore the bank’s commitment to prosecuting fraud cases and maintaining the security and trustworthiness of its services.
