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JPMorgan Chase sues customers over viral 'infinite money glitch'

JPMorgan is suing customers who took advantage of a glitch in the bank's cheque deposit service to withdraw thousands of dollars from its ATMs.

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JPMorgan Chase sues customers over viral 'infinite money glitch'

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This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The glitch allowed customers to write a large cheque to themselves and then withdraw all of the cash deposited before the cheque bounced.

Banks in the US usually allow customers to withdraw only a small fraction of the value of a cheque before it is cleared.

The cash withdrawal loophole quickly went viral after it was promoted on TikTok as the 'infinite money glitch'.

Chase is pursuing thousands of customer who took advantage of the loophole and has now commenced criminal proceedings against two individuals and two business.

They are being asked to return the money with interest, pay related overdraft fees and cover legal expenses as well as other costs suffered by the bank.

In one of the cases a masked man deposited a cheque in the defendant’s Chase bank account for $335,000. By the time the cheque was identified as counterfeit, the customer had already withdrawn $290,000.

"Chase takes its responsibility to combat fraud seriously," the bank said in the court filings. "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."

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