JPMorgan Chase, the largest bank in the U.S., has filed lawsuits against multiple customers who allegedly exploited an ATM glitch to commit check fraud. The temporary glitch, which gained attention on TikTok, reportedly allowed individuals to deposit large checks and withdraw funds before the checks cleared, leading to substantial losses for the bank.
The lawsuits, filed Monday in Los Angeles, Houston, and Miami, accuse two individuals and two businesses of unlawfully withdrawing over $661,000. One high-profile case involves a Houston man who allegedly owes nearly $291,000 after a $335,000 check, deposited by a masked individual, bounced on September 4. According to the bank, the funds had already been withdrawn by the time the check was found to be counterfeit.
JPMorgan is demanding that the defendants return the improperly withdrawn funds, citing breaches of their deposit agreements. A spokesperson for JPMorgan, Drew Pusateri, commented, “Fraud is a crime that impacts everyone and undermines trust in the banking system.” The bank is cooperating with law enforcement to address these cases and prevent similar incidents.
Check fraud, classified as a federal crime, has serious consequences. Most banks allow limited access to check funds while awaiting clearance, but JPMorgan’s glitch temporarily compromised this process. The bank’s lawsuits serve as a warning to potential fraudsters and underline its commitment to maintaining a trustworthy banking system.
