JPMorgan sues customers over TikTok’s 'infinite money glitch' ATM trend

JPMorgan Chase has initiated multiple lawsuits against customers accused of exploiting a viral ATM glitch that enabled them to withdraw substantial sums from deposited checks before they cleared.

The lawsuits were filed on Monday in Houston, Miami, and Los Angeles, targeting two individuals and two businesses believed to have illegally retained more than $661,000.

The glitch, which emerged in late August, allowed users to deposit large checks through ATMs and withdraw funds almost immediately, regardless of whether the checks ultimately bounced.

In one notable case, a Houston man allegedly withdrew $290,939.47 from a $335,000 check deposited by an unidentified masked individual on August 29.

JPMorgan reported that the check was rejected just days later, on September 4.

The lawsuits filed by the nation’s largest bank not only seek the return of improperly withdrawn funds but also additional costs associated with the fraudulent activity.

The bank has emphasized that these civil cases do not preclude the possibility of criminal charges against the defendants.

JPMorgan, headquartered in New York, is actively pursuing these cases while collaborating with law enforcement to hold individuals accountable.

“Fraud is a crime that impacts everyone and undermines trust in the banking system,” stated JPMorgan spokesman Drew Pusateri.

Check fraud is classified as a federal crime in the United States, and while banks like JPMorgan allow customers to access a portion of their checks' value prior to clearing, the recent incidents have raised serious concerns.

Last month, the Wall Street Journal reported that JPMorgan was investigating thousands of potential check fraud cases linked to the glitch.

Despite the growing adoption of digital payment methods, paper checks remain a prevalent form of payment in the US, even as many European countries phased them out two decades ago.

In places like the UK and the Netherlands, checks are virtually obsolete, highlighting the disparity in payment methods across regions.