JPMorgan sues customers over "infinite money" glitch

JPMorgan is suing customers it alleges took advantage of a method glitch to bargain thousands of dollars from nan slope astatine ATMs. 

The loophole, called nan "infinite money glitch" by societal media users who became alert of it successful August, fto customers deposit counterfeit checks for ample amounts of money and past retreat nan costs earlier nan slope could verify they were bogus. 

Social media videos celebrating group withdrawing ill-gotten costs heightened consciousness of nan loophole. The slope patched nan bug days later and launched an investigation into nan incident.

The slope connected Monday revenge lawsuits successful aggregate national courts against group it says withdrew nan top sums of money.

Check fraud losses successful U.S.

"Fraud is simply a crime that impacts everyone and undermines spot successful nan banking system. We're pursuing these cases and actively cooperating pinch rule enforcement to make judge if personification is committing fraud against Chase and its customers, they're held accountable," a JPMorgan spokesperson said successful a connection to CBS MoneyWatch. 

In a suit revenge Monday successful nan Southern District of Texas, JPMorgan alleges that successful August, a "masked man" deposited a counterfeit cheque for $335,000 into a defendant's slope relationship astatine an ATM. He past withdrew nan immense mostly of nan funds, earlier nan cheque was returned arsenic counterfeit. The slope alleges nan suspect owes Chase $290,939.47

Check fraud results successful astir $26.6 cardinal successful losses annually, according to Nasdaq's Global Financial Crime Report. In 2023, 80% of specified fraud took spot successful nan Americas, according to nan report.  

JP Morgan revenge further lawsuits successful Miami and nan Central District of California Monday. Chase alleges a suspect successful California deposited 2 fraudulent checks totaling $116,063.55, and "began transferring important amounts of those ill-gotten costs retired of his account."

The checks were yet returned, resulting successful a important antagonistic equilibrium to nan defendant's account. Chase alleges he owes nan slope $90,794.02 and has grounded to salary nan magnitude of overdraft positive applicable fees. 

JPMorgan seeks nan return of nan stolen costs pinch liking and overdraft fees, positive lawyers' fees. In immoderate cases, it is besides seeking punitive damages, according to nan complaints.