(NewsNation) — JPMorgan Chase, the largest U.S. bank, is suing customers for check fraud, saying they allegedly stole funds from the ATM in an “unlimited money” technical glitch that went viral on TikTok.
The bank filed four lawsuits Monday in federal courts in Los Angeles, Houston and Miami, accusing two individuals and two businesses of illegally retaining more than $661,000 after the checks they deposited were deemed counterfeit or forged.
The glitch, which was exposed in August, let customers deposit big checks in ATMs and withdraw funds immediately before the checks could clear, even if the checks later bounced.
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In the largest case, Chase said a Houston man still owes $290,939.47 after withdrawing over two days most of a $335,000 check that a masked man deposited in his account Aug. 29. Chase said the check was rejected Sept. 4.
The defendants did not answer, did not accept, or could not immediately be reached with messages seeking comment Monday.
All four lawsuits accuse the defendants of violating their deposit agreements, and seek the return of improperly withdrawn funds plus other costs.
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JPMorgan, based in New York, said it is pursuing the cases and cooperating with law enforcement to ensure that people are held accountable.
Last month, The Wall Street Journal said the bank was investigating thousands of possible check fraud incidents.
“Fraud is a crime that impacts everyone and undermines trust in the banking system,” JPMorgan spokesman Drew Pusateri said in a statement.
Check fraud is a federal crime. Many banks including Chase let customers access some of the value of their checks before the checks clear.
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In August 2024, people realized that if they deposited a “bad” check, Chase ATMs would let them get much of the amount out in cash before the check bounced, Vice reported.
Some social media users proudly showed off their success at obtaining cash, to the tune of tens of thousands of dollars.
Now, those same people who proudly showed off their “infinite money” on social media are realizing they may have commited check fraud. In a “Chase glitch update,” one user talks about how she is hiring a lawyer.
CNBC reported that check fraud was responsible for $26.6 billion in losses globally last year, citing Nasdaq’s Global Financial Crime Report.
Reuters contributed to this report.
